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Compa S. A.

Quarterly Report May 13, 2022

2308_10-q_2022-05-13_5313f2fd-9fc1-4147-b9e6-010f4ab3c949.pdf

Quarterly Report

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FINANCIAL SUPERVISORY AUTHORITY - Financial Instruments and Investments Sector BUCHAREST STOCK EXCHANGE - Regulated market

REPORT FIRST QUARTER 2022 SEPARATE AND CONSOLIDATED

According to FSA Regulation no. 5/2018 (Appendix 13) on issuers and operations with securities

Report date: 12th May
2022
Name of the issuing company: COMPA S.A. Sibiu
Social headquarters: Sibiu, No.8, Henri Coandă Street, Postal Code 550234
Phone/fax number: +40269 237 878; + 40269 237 770
VAT no : RO 788767
Order Number in the Trade Register: J32 / 129 / 1991
Share capital: RON 21.882.103,8
(symbol CMP) Regulated market on which the issued securities are traded: Bucharest Stock Exchange – Standard Category
LEI Code 315700EXV87GJDVUUA14
__________________

Economic and Financial Indicators registered by Compa at 31.03.2022.

A. BETWEEN 01.01.2022-31.03.2022 COMPA REGISTERS THE FOLLOWING ECONOMIC AND FINANCIAL INDICATORS AT SEPARATE LEVEL.

1. The main balance sheet elements

Indicator Name 31/3/2021 31/3/2022 %
31.03.2022/31.03.2021
FIXED ASSETS 498,501,516 477,868,339 95.86
CURRENT ASSETS 265,092,507 321,382,412 121.23
DEBTS LESS THAN ONE YEAR 158,222,351 162,101,702 102.45
DEBTS LONGER THAN ONE YEAR 112,954,785 138,346,074 122.48
CAPITAL AND RESERVES 492,416,887 499,818,513 101.50

2. The main elements of the overall result

%
Indicator Name 31/3/2021 31/3/2022 31.03.2022/31.03.2021
TURNOVER 181,363,841 198,373,767 109.38
GROSS PROFIT 8,006,693 1,920,526 23.99
NET PROFIT 7,474,755 1,388,476 18.58
Indicator Name 31/3/2021 31/3/2022 %
31.03.2022/31.03.2021
CURRENT LIQUIDITY (current
assets/current debts)
1.68 1.98 117.86
DEGREE OF INDEBTEDNESS
(borrowed capital/comitted
capital)
18.66% 21.71% 116.35
ROTATION RATE OF FLOWS -
CUSTOMERS
69.33 69.85 100.75
ROTATION RATE OF FIXED ASSETS 0.36 0.42 116.67

B. BETWEEN 01.01.2022-31.03.2022 COMPA REGISTERS THE FOLLOWING ECONOMIC AND FINANCIAL INDICATORS AT CONSOLIDATED LEVEL.

1. The main balance sheet elements :

Indicator Name 31/3/2021 31/3/2022 %
31.03.2022/31.03.2021
FIXED ASSETS 497,016,723 491,864,239 98.96
CURRENT ASSETS 268,731,945 332,903,242 123.88
DEBTS LESS THAN ONE YEAR 154,862,890 160,693,907 103.77
DEBTS LONGER THAN ONE YEAR 113,119,483 160,131,301 141.56
CAPITAL AND RESERVES 497,766,295 503,942,272 101.24

2. The main elements of the overall results

%
Indicator Name 31/3/2021 31/3/2022 31.03.2022/31.03.2021
TURNOVER 182,226,772 199,326,832 109.38
GROSS PROFIT 8,050,309 1,734,588 21.55
NET PROFIT 7,492,578 1,188,973 15.87

3. The main economic financial indicators

%
Indicator Name 31/3/2021 31/3/2022 31.03.2022/31.03.2021
CURRENT LIQUIDITY (current assets/current
debts)
1.74 2.07 118.97
DEGREE OF INDEBTEDNESS (borrowed
capital/comitted capital)
17.03% 24.11% 141.57
ROTATION RATE OF FLOWS -CUSTOMERS 69.92 69.44 99.31
ROTATION RATE OF FIXED ASSTES 0.37 0.41 110.81

The report for the first Quarter of the year 2022 – separate and consolidated – is not audited can be consulted in the link below, on the website www.compa.ro at Investor Relations / Legal Reports / 2022 section and on the issuer's profile on the website Bucharest Stock Exchange, www.bvb.ro , CMP symbol.

President of the Board & CEO, Vicepresident Of the Board Ioan DEAC Ioan MICLEA

INDIVIDUAL REPORT T1 - 2022

(unaudited)

INDIVIDUAL REPORT Q1 – 2022

INTERIM

FINANCIAL SEPARATE REPORT

Q1 – 2021 (31.03.2022)

UNAUDITED

Prepared in accordance with International Financial Reporting Standards adopted by the European Union

CONTENT

  • 1. INTRODUCTION
  • 2. COMPA - A BRIEF HISTORY
  • 3. IMPORTANT EVENTS IN THE FIRST 3 MONTHS OF 2022
  • 4. FINANCIAL AND ACCOUNTING SITUATION
  • 5. ANALYSIS OF THE COMPANY'S ACTIVITY
  • 5.1. PRODUCTS, PROCESSES
  • 5.2. PURCHASES - SUPPLIERS
  • 5.3. SALES
  • 5.4. OUR EMPLOYEES
  • 5.5. QUALITY - ENVIRONMENT
  • 5.6. RISK MANAGEMENT
  • 5.7. INVESTMENTS, NEW PRODUCTS AND R&D
  • 6. CAPITAL MARKET
  • 7. CORPORATE GOVERNANCE
  • 8. SIGNIFICANT TRANSACTIONS
  • 9. STATEMENT OF COMPLIANCE OF THE INDIVIDUAL INTERIM FINANCIAL REPORT
  • 10. INDIVIDUAL INTERIM FINANCIAL REPORT AS AT 31.03.2022

1. INTRODUCTION

This Report of the Board of Directors is prepared in accordance with :

  • Regulation ASFnr. 5/2018 on issuers of financial instruments and market operations, and

  • Law 24/2017 on issuers of financial instruments and market operations, Article 65.

The quarterly report has the major objective of informing investors about the changes in the position and performance of the company that occurred in Q1 2022.

Compa S.A. prepares its individual financial statements in accordance with the International Financial Reporting Standards (IFRS).

2. COMPA – A BRIEF HISTORY

COMPA S.A. - a prestigious brand of the Romanian automotive industry has earned its reputation over time due to the diversity and competitiveness of its products, especially in the field of automotive and springs, qualities acquired in over 130 years of existence and performing activity.

SHORT HISTORY

1886 - First official documentary record of the Iózsef Datky (1844-1928) blacksmith's workshop, known as the "Datky Iosif & Sons Carriage Workshop", which produced lamellar carriage springs, forgings, bars, buckets, hammers, tesels, etc. The workshop became a supplier of carriages for the Royal House of Vienna, and the recognition of the merits and quality of the products made is also attested by its participation in international exhibitions: Budapest (1896) and Paris (1898).

1920 - Beginning of the manufacture of springs for cars and wagons and the transformation of the forge workshop into "Elastic & Datky" - the first Romanian spring factory and special forge workshop.

1932 - "ELASTIC DATKY & Co" - the first factory of springs and batteries - switches to the manufacture of batteries and spiral springs. The technology of manufacturing leaf springs for trucks and cars was also developed.

1948 - Nationalization of the factory and continuation of the activity under the name of STATE ELASTIC ENTERPRISE which until 1960 produced piles, springs and forgings.

1961 - Uzina Elastic Sibiu is profiled on the manufacture of: Leaf springs, hot and cold coiled springs

1969 - stablishment of the Sibiu Auto Parts Company (IPAS), through the merger of two important companies in Sibiu, which have had an independent individual path over time:

  • Uzina Automecanica, with an impressive history during its development, from an Arsenal of the Sibiu Artillery that provided the repair and manufacture of armament for the defence of Sibiu Fortress (before the merger) to the production of automotive equipment, combining the experience of its ancestors with the new advances in technology and management of those times;

  • The Elastic factory, with its deep roots in the craftsmanship tradition of the fortress, was founded in the 19th century as a blacksmith's workshop, which later developed into a bodywork workshop and finally, before the 1969 amalgamation, into a factory of springs and forged products.

The unification of the two representative factories of Sibiu and the establishment of the Auto Parts Company (IPA) was a crucial moment, laying the foundations for the founding in Sibiu of a powerful company in the automotive field, an enterprise that was to become one of the main suppliers of components for the manufacture of trucks and buses based on the license taken over by the Romanian State from the German company MAN.

The Auto Parts Enterprise, entered a national development program, with major investments in the construction of warehouses and the purchase of state-of-the-art machinery and equipment, of the period. Within the company they have been assimilated into manufacturing and produced as a result of buying licences from various firms in the European automotive industry:

  • Equipment for vehicle braking systems;
  • Cardanic transmissions;
  • Steering systems;
  • Telescopic shock absorbers;
  • Vehicle suspension systems.
brake equipments SO DOMESTICS!
drive shafts otta:
steering gears Ø
telescopic shock absorbers STROW
suspension

1991 - Transformation of the SIBIU AUTO PARTS COMPANY, following the change of regime in December 1989, into a joint-stock company, fully state-owned, with the name of S.C.COMPA S.A.Sibiu.

1996 - Establishment by Compa, together with a company belonging to the German concern KRUPP, of a joint venture - Krupp Bilstein Compa, for the manufacture of telescopic shock absorbers for automobile production.

1997 - The company's shares are traded on the Bucharest Stock Exchange from 12 June 1997 under the symbol CMP. The shares issued by the company are traded in the Standard category of the BVB.

1998 - Establishment of the second joint venture company - Krupp Compa Arcuri, for the manufacture of leaf springs for trucks, vans and off-road vehicles.

1999 - Full privatisation of COMPA, with the Compa Employees Association taking over the main shareholding. Privatisation was the most radical form of restructuring. The change in ownership meant a complex and profound change in the way all the company's functions were carried out, separately and as a whole. The conditions were created for the most profitable use of human, material and financial resources.

2000 - The first affiliated company - Compa IT SRL, in the IT sector, with full COMPA capital, is established.

2001 - The affiliated company TRANS CAS SRL is established, with predominantly COMPA capital, by transforming the existing Transport Base within the company into a separate domestic and international transport company.

2004 - The affiliated company RECASERV SRL is established, with a catering profile, carried out by outsourcing specific activities (canteen and microcanteens in COMPA). It later expanded its activity through catering and cleaning services.

2004-2018 - Establishment of collaborative partnerships with some of the most important automotive companies in the world, as well as with non-auto companies, in order to produce components mainly for the automotive industry worldwide.

2020 - Participation of Compa S.A. as sole partner in the establishment of a limited liability company called Arini Hospitality SRL;

2021 - Establishment of a limited liability company named Arini Hospitality SRL.

During this period, rehabilitation works have been carried out, especially in the halls and storage areas, requiring their modernization and bringing them to a level of operation in the conditions required by our business partners.

Significant investment expenditure has been made to ensure that the production facilities meet the requirements and standards of these periods. The overwhelming part of the investment expenditure made from our own sources and from bank loans was mainly directed towards financing the purchase of new, state-of-the-art machinery and equipment, in order to be able to produce car components at the level of complexity, technicality and quality required by the company's partners:

Compa S.A. continues to develop at a steady pace, using high performance technologies and equipment

3 IMPORTANT EVENTS IN THE FIRST THREE MONTHS OF 2022

As important events recorded in the activity of Compa during the first quarter of 2022 we can highlight the meetings of the Board of Directors of Compa S.A. (BoD) following the convocation of the Chairman of the BoD, as follows:

01.02.2022 - The Board of Directors of Compa S.A. was convened at the proposal of the economic-financial department of the company, analyzed and approved regarding the results of the inventory of the company's assets for the year 2021 and consisting of:

  • the write-off of some assets of a fixed asset nature, the overwhelming majority of which were fully analysed. It was found that these fixed assets have a very high degree of wear and tear and can no longer operate within the parameters designed within the company, being also very old;

  • the inclusion in the revenue of some debts which are overdue to certain creditors, particularly suppliers

  • write-off, recording of inventory write-downs, impairment adjustments of receivables and other uncollected debts, resulting from the inventory of the firm's assets for 2021.

23.02.2022 - At the meeting of the Board of Directors convened on 23.02.2022, the preliminary financial results for 2021, both the individual results for Compa and the preliminary financial results for 2021 for the Group, were analysed and approved.

24.02.2022 - An event with a major impact on the entire world economy, including Romania and of course on Compa's activity, is the military attack on Ukraine by the Russian army. The effects of this armed conflict on Compa are:

  • reduction in the volume of orders from most customers

  • major disruptions in the supply chain of raw materials and materials, consisting of changes in suppliers; force majeure situations at various suppliers with implications for the entire supply chain

  • cost increases due to price explosions for: electricity, methane gas, steels, chemicals, spare parts, etc.

  • major impact on the profitability of the company as a result of: non-recognition or (partial) acceptance of prices by most customers, unprecedented increases in utility prices with escalation of these price increases from almost all suppliers.

These major effects in Compa's costs, significantly reduced Compa's realized profit margin in Quarter 1 of 2022.

10.03.2022 - A meeting of the Board of Directors of Compa S.A. was convened to approve the proposal to convene the Ordinary General Meeting of Shareholders (AGM) for 28.04.2022 first call (15:00) and 29. 04.2022, second convocation (15:00) as well as the proposal to convene the Extraordinary General Meeting of Shareholders (EGM0 for 28.04.2022 first convocation 16:00) and 29.04.2022, second convocation (16:00).

The Board of Directors approved the agenda of the AGM convened on 28/29.04.2022, in which a number of 11 items were included (according to the Notice of Meeting) as well as the 12 items included in the Notice of Meeting related to the AGM of 28/29.04.2022.

The Board of Directors meeting on 10.03.2022 also approved the following:

  • the date of 12.04.2022 as the reference date for the AGM and the EGM of 28/29.04.2022 respectively

  • the appointment of Mr. Băiașu Dan Nicolae as Deputy General Manager, as of 01.04.2022.

16.03.2022 - At the Board of Directors meeting of 16.03.2022 it was approved to add to the agenda of the AGM of 28/29.04.2022 another item on the Management Remuneration Report prepared for 2021. With this item, the agenda of the AGM of 28/29.04.2022 approved at the Board meeting of 10.03.2022 is supplemented.

23.03.2022 - At the meeting held on 23.03.2022, the Board of Directors approved the Individual and Consolidated Annual Report for the financial year 2021 prepared in accordance with Annex 15 of ASF Regulation no. 5/2018. Also during the Board meeting of 23.03.2022, the Income and Expenditure Budget for 2022 and the Investment Programme for 2022 were approved.

4. FINANCIAL STATEMENT

4.1. Main balance sheet items as at 31.03.2022 compared to 31.03.2021

In order to analyse the economic and financial situation for Q1 - 2022, we present below the following indicators:

INDICATOR DESIGNATION 31.03.2021 31.03.2022
Non-current assets 498,501,516 477,868,339
Current assets 265,092,507 321,382,412
Debts less than one year 158,222,351 162,101,702
Liabilities over one year 112,954,785 138,346,074
Capital and reserves 492,416,887 499,818,513

4.2. Main economic and financial indicators

INDICATOR DESIGNATION 31.03.2021 31.03.2022
Turnover 181,363,841 198,373,767
Gross profit 8,006,693 1,920,526
Net profit 7,474,755 1,388,476
Current liquidity 1.68 1.98
Debt ratio 18.66% 21.71%
Debt turnover - customers 69.33 69.85
Turnover speed of fixed assets 0.36 0.42
Current liquidity:
Degree of indebtedness:
Current assets/current liabilities
Borrowed capital/ capital employed
Turnover
customers:
speed of debits - Average customer balance / Turnover x 90
Turnover speed of fixed assets: Turnover / Fixed assets

5 . ANALYSIS OF THE COMPANY'S ACTIVITIES

5.1. PRODUCTS , PROCESES

" PROFIT CENTRE" organisational structure for the management of production activity in COMPA

The production activity in the parent company Compa is organised by Profit Centres. These "profit centres" are in fact production sections/areas where families of products similar in terms of construction and technology are produced, equipped with machines and equipment specific to the production of these products, being decentralised production units. In this case, the products produced are intended for a single customer or a limited number of customers. The economic activity is organised in such a way that each profit centre draws up a monthly profit and loss account, which is a particularly important document for identifying income and expenditure, so that by adding up the profit and loss accounts of the profit centres the profit and loss account at COMPA level is obtained.

There are also profit centres specialising in the production of a wide range of products whose production processes are part of the same family: forging processes, cold stamping processes, surface coatings (zinc plating, phosphating), heat treatments, etc. products intended for several customers. In this case, profit centres are structured to produce certain types of products, regardless of the customer to whom they are delivered.

By decentralising the activity, i.e. organising these production sections/batches into profit centres, the operations managers, who are responsible for the profitable management of these production units, have been entrusted with multi-functional teams, staffed with directly productive workers and indirectly productive staff, support services, in areas such as: production, technical, quality, maintenance, logistics, continuous improvement, training-instruction.

The operations managers together with the cross-functional teams have the obligation to achieve each product at the level of profitability included in the price negotiated with the business partner. This is the direction in which the work of the multifunctional teams of the profit centres is oriented: to meet the standard costs established, to permanently reduce costs, to obtain the planned profit of each product manufactured

Machining line Forging Line

COMPA produces a wide range of products and operates with various processes. Their grouping, for the purpose of quantifying the value of production manufactured both in the Annual Reports of the Board of Directors and for various statistical reporting purposes, is based on a certain functional similarity between them, branches or industrial sectors, etc

Thus, the organisational and logistical structure is coherent and can be understood by COMPA shareholders and investors, business partners, etc.

INDIVIDUAL REPORT Q1 – 2022

5.2. ACQUISITIONS – SUPPLIERS

5.2.1. Purchasing activity evaluation:

The buying business has grown continuously in recent years as the company has developed. The company's focus on large automotive and non-auto customers has led to a considerable broadening of the supplier database and an increase in the share of imported suppliers in total purchases. This is due to the high level of specialisation required of suppliers. It is also expected that in the coming period the value of semi-finished products in total purchases will decrease in favour of basic materials, largely due to the development of new processes in COMPA for both the automotive and the highly integrated nonauto sector, for which most of the operations are performed in-house.

5.2.2. The main goals of the department are:

In the context of market globalisation - the need to align the market with stock exchange quotations for most products by obtaining a 100% MEPS (Management Engineering and Production Services - a price indicator in the metallurgical market that provides price estimates) price index. Finding sources of supply that ensure the highest possible price competitiveness of raw materials and supplied materials, stability and sustainability of the supply chain.

Prospecting the market and finding new sourcing solutions as well as developing the

suppliers with whom there are collaborations in order to obtain the best price and quality level in the products supplied by collaborating only with certified suppliers. COMPA monitors and evaluates on a monthly basis all

suppliers whose products are incorporated in or influence COMPA products. This category includes more than 360 suppliers who are evaluated according to criteria related to the quality of the products delivered and logistical criteria. Improving the performance of chipping tools (e.g. drills, reamers, milling cutters, inserts, etc.) is achieved by testing and implementing new and innovative solutions that lead to a reduction in the cost per

part.

Recovery of costs generated by the non-quality of the products supplied. The costs generated with non-conforming products delivered by suppliers are monitored and recovered each year.

Establish a responsible supply chain by working with suppliers that comply with COMPA's principles and vision in the areas of quality, environment and occupational health and safety by adhering to and implementing policies and regulations that address these issues, by adhering

to, certifying and aligning with regulations/standards that address these issues.

COMPA maintains and requires its suppliers to take a proactive approach in managing environmental impact, social responsibility and adopting progressive labour, health and safety policies. COMPA encourages and supports the local business environment through existing business relationships, existing contracts and new/upcoming projects in which its partners are/will be involved. Prioritises where possible the development of business with local partners and encourages its suppliers to do the same.

5.3. SALES

5.3.1. Evaluation of sales activity

In the first 3 months of 2022, the department's work was mainly focused on updating the selling prices of all products, in line with the new utility prices of raw materials and auxiliary materials, which are continuously increasing.

Offering new products to customers was also part of the core activity during this period.

The graph below shows the development of COMPA's turnover for the first 3 months of 2022

The share of COMPA's main customers in the turnover for the first 3 months is shown in the following graf:

5.3.2. Objectives, trends and strategies for the medium-long term:

- Maintain profitability levels by adjusting sales prices according to market trends;

  • Develop new projects for non-auto customers;
  • Strengthening commercial relationships with existing customers;
  • Promote manufacturing processes by hot forging and ZnNi coatings, where Compa has free production capacity;
  • Assimilation of high value-added products;
  • Develop Compa as an integrated supplier by using as many existing processes as possible in the portfolio.

5.4. OUR EMPLOYEES

5.4.1. Our staff, values and beliefs

COMPA takes a strategic and coherent approach to how the organisation's most important resource - people - is managed. Thus, human resource management aims at the process of achieving organisational objectives by attracting, retaining, developing and effectively using the human resources in the organisation.

COMPA believes that the human factor has a major influence on the company's achievements. The values and beliefs of human resources need to be known and promoted in order to form and develop an organisational culture conducive to performance.

The following aspects of human resource management are important and constitute development benchmarks:

  • Contributing to the achievement of organisational goals through people;
  • Creating an optimal organisational structure;
  • Ensuring competent human resources through recruitment and selection;
  • Adapting human resources to requirements development and training;
  • Creating and strengthening motivation (material and non-material rewards), performance management;

• Creating and maintaining good employer-employee relations.

In terms of human capital management, it was assumed that the achievement of strategic objectives depends primarily on the human factor. Firm development involves elements that create long-term value and can ensure the future performance of the organisation.

COMPA's human resources policy aims to be in line with the general objectives of the company, in line with the values existing in the organisational culture, adapted to the current social-economic context, focusing mainly on:

  • Ensuring the availability and continuity of the workforce by preserving the organisation's values;
  • Early recruitment of graduates;
  • Increasing the level of versatility by broadening the range of skills;
  • Reducing the integration period for new employees, graduates of technical vocational education, through internships;
  • Focusing training on the individual to increase staff skills and efficiency;
  • Strengthening the pay-for-performance system;
  • Leveraging the expertise of experienced employees through mentoring programmes;
  • Raising staff awareness of job responsibilities;
  • Involvement in the implementation of the Social Responsibility management system

5.4.2. Strategic objectives

Principalele axe strategice urmărite sunt:

Involvement in the development of university technical education by supporting the integration of theoretical and practical knowledge through internships at a potential workplace;

  • Providing human resources by getting involved in supporting dual education, apprenticeship and qualification programmes, including through European-funded programmes;
  • Working conditions and climate to ensure a high level of satisfaction;
  • Development of soft and specific skills;
  • Developing the framework for communication with employees to support performance and trust, and in special crisis situations;
  • Partial transfer of training activity to the online environment;
  • Re-evaluate motivation strategies;
  • Digitising and streamlining HR processes;
  • Reprofessionalisation and transformation of skills in line with technical and technological changes;
  • Projects for the development of human resources financed by European funds;
  • Career development programmes.

5.4.3. Wage and social policy

Following negotiations between COMPA management and trade unions, during the period from November 2021 to October 2022, an indexation of the tariff salary was granted with the fixed amount resulting from the application of 6.30% (inflation) to class 14 (average salary class), i.e. 200 lei gross.

With the indexation of the pay scale, the benefits deriving from it (Christmas and Easter bonus, holiday bonus, travel allowance, etc.) were also indexed by the same percentage.

Throughout the period, all employees were granted meal vouchers worth 20 lei/day.

There is an employment relationship between the company management and the employees within the limits of the Labour Code and the Collective Labour Agreement.

Weekly briefings and consultations take place between management and employee representatives. Compared to previous years, relations have improved, the degree of understanding and communication has increased, and the two parties participate in joint meetings. As a result, there were no periods of stagnation in the production process due to the outbreak of labour disputes.

In the context of the difficult labour market climate generated by the Covid-19 pandemic, COMPA has pursued a policy of increasing staff adaptability to the changes the company is going through. During this period, the company has relied on the willingness of employees to develop new skills as well as to take on additional responsibilities in the event of restructuring of certain activities..

5.4.4. Social responsibility

COMPA consistently applies principles and rules of social responsibility that reflect the requirements of the SR ISO 26000:2011 standard, as well as those of our customers:

  • Taking responsibility for our impacts on society, the economy and the environment;
  • Transparency of our decisions and activities that may affect society and the environment;
  • Respecting and promoting ethical behaviour: honesty, fairness and integrity as values that we care about in relation to people and the environment;
  • Respect for the interests of stakeholders in our decisions and activities;
  • Ensuring compliance with all applicable laws and regulations;
  • Compliance with international standards of business conduct;
  • Respecting and promoting human rights, which we consider inalienable and universal.

5.4.5. The guidelines as main themes for action are:

  • Ensuring organisational management as a way of conducting and carrying out activities in an ethical and responsible manner;
  • Respecting and promoting human rights in the sense of recognising the rights of all human beings, civil, political, economic, social and cultural rights;
  • Application of appropriate work practices to ensure working conditions and social protection in accordance with applicable legal standards and regulations;
  • Protecting the environment as a way of responding to current environmental challenges and as a commitment to apply and promote environmentally responsible practices, including by encouraging the development of environmentally sound technologies;
  • Applying fair practices as a way of ethical conduct in dealing with other organisations and individuals, respecting applicable national and international laws and regulations;
  • Accountability to customers and consumers for ensuring their right to security of use, information, choice, expression, correction, education, in relation to products and services provided by our organization;
  • Involvement in community development as a way of recognizing that we are part of the community, of the rights due to its members, as well as elements of culture, religion, tradition and history or partnership with it.

5.4.6. Performance indicators of Human Resources processes

Average number of staff

Evolution of the average number of staff in the quarter. I 2022 increased compared to the same period in 2021, from 1836 employees to 1859 employees. This increase was due to the correlation of the number of staff with the higher workload after the Coronavirus pandemic.

At the end of Quarter. 1 2022 there was a slight increase in total staff to 1866 employees.

Throughout this period the aim was to ensure the availability and continuity of the workforce by maintaining the values in the organisation.

The graph below shows the evolution of the average number of staff by category:

T1 - 2021 % T1 - 2022 %
MDP (Directly Productive Workers) 1215 66,18% 1127 60,62%
MIP (Indirectly Productive Workers) 231 12,58% 300 16,14%
TESA (Tehnico economic) 390 21,24% 432 23,24%
TOTAL 1836 100,00% 1859 100,00%

It can be seen that although the average number of staff has increased slightly, the proportions of the three categories of staff have changed, with an increase in the proportion of indirect workers and TESA staff. This change was due to the transfer of the sorting activity from the Manufacturing department to the Quality-Environment department for better coordination.

Labour productivity

Labour productivity, calculated as the ratio of turnover to the average number of employees, developed as follows:

T1 - 2021 T1 - 2022
Labour productivity (thousand lei/pers.) 104,64 111,54

At the end of Q1 -2022, labour productivity recorded a cumulative value of 111.54 thousand lei/person, 6.6% higher than the value recorded for this indicator at the end of Q1 - 2021.

Staff fluctuation

Staff turnover, calculated as the ratio between the number of voluntary departures and the total number of employees, developed as follows during this period:

T1 - 2021 T1 - 2022
Staff fluctuation (%) 5,11 6,18

An analysis of the evolution of staff turnover showed an increase in this indicator, which is why a series of measures were established in COMPA to remedy this situation, namely: reporting to the level of wages and benefits in the area, qualification/ retraining courses offered to employees, the conclusion of apprenticeship contracts, providing transport for commuting employees, settling the cost of transport for other employees, improving working conditions (air-conditioning installations, reducing noxiousness, social spaces, etc.), compensating for the labour shortage with qualified staff from abroad.

Recruitment and selection

In sem. I 2022 540 job offers (CVs, applications, letters of intent) were submitted. A total of 375 people participated in interviews (interview, work samples, psychological tests) to fill vacancies.

Of these, 156 were hired, 50 were rejected for professional reasons at the interview/work tests, 30 were rejected for other reasons (illiteracy, health problems incompatible with the working conditions) and 139 people gave up the job offered for various reasons (working environment, working hours, salary).

Staff training

The staff training policy aims at the continuous development of human capital through the training of strategic skills in order to maintain the company's position in a competitive and constantly changing environment such as the automotive sector.

The training programs carried out in COMPA respond to the needs of each employee and aim at: bridging the gap between the skills required by the job and the existing ones, ensuring integrated, validated, certified staff at the job, acquiring/broadening the scope of skills to meet the challenges generated by the new wave in the technological evolution of production (Industrialization 4.0, digitalization, use of "green" technologies, etc.), professional development for career advancement, continuous improvement of employees' work.

To achieve these objectives, the Professional Training Centre was set up in 2005. The programs developed through the center aimed at qualifying/re-qualifying employees and people on the labor market in trades such as: numerically controlled machine tool operators, welders, locksmiths, machine mechanics, tool mechanics, sculptors - moldmakers, metrology technicians, drillers - threaders, etc. In 2021 the educational offer was diversified by authorizing the course "Entrepreneurial Skills". So far a number of 3043 people have acquired a qualification by following the programs run by the center . The Vocational Training Centre is the place where new employees are familiarized with operating on MUCN and the specific requirements of the workplace, a necessary stage in the process of integration and validation at work.

COMPA, as a "Continuous Learning Organization" has set a target of 30 hours of training for each employee by 2022

Apprenticeship

For new employees wishing to acquire a qualification or retrain, COMPA develops apprenticeship programmes that enable them to integrate easily into their new jobs, obtain a recognised certification, and raise their level of knowledge, satisfaction and responsibility. Apprenticeship programmes last two years for people who want to obtain a level 3 qualification (MUCN operator) and one year for people who want to obtain a level 2 qualification (driller - threader).

Nine people have completed the level 3 apprenticeship programme - MUCN operator, of which 8 have been certified, and one person has obtained the qualification of driller - threader.

In the future, we aim to attract new employees to complete apprenticeship programmes and obtain qualifications as: CNC machine tool operator, locksmith, driller-threadmaker, etc.

Projects developed with European funds

In order to become increasingly competitive in terms of productivity, quality, customer satisfaction, conservation of resources and the environment, investment in human capital will continue to increase, including by attracting European and other funding.

So far in COMPA, 14 projects have been or are being implemented to develop the skills of its own employees and projects aimed at facilitating the transition from school to working life for pupils and students.

Sustainable school-business partnerships

The company's partnerships with technical and vocational university education institutions in Sibiu date back to the 1970s with the establishment of the Institute of Higher Education, now the "Hermann Oberth" Faculty of Engineering, and the IPAS High School, now the "Henri Coandă" Technological High School.

The proximity to university and vocational education institutions is part of COMPA's policy to train future generations of specialists, to develop the employability of young people, facilitating the transition from school to working life through internship programs, master, private scholarships and more.

The partnerships concluded are mainly aimed at involving COMPA in two areas of improvement:

  • Theoretical training through contributions to the adaptation and modernisation of the Faculty of Engineering's teaching plans and the adaptation of the curriculum in local development to the needs of the employer for vocational and technical education.

  • Practical training by ensuring students' access to modern working environments, to high-performance technologies and equipment, to knowledge and understanding of processes developed on manufacturing lines, to familiarization with the rigors of the industrial environment.

COMPA and dual education

COMPA throughout its existence of more than 135 years has always relied on vocational education being one of the companies that anticipated the need to implement the dual education system. The beginning of dual education in COMPA was in 2005, with the opening of the Vocational Training Centre, a modern technical platform equipped with numerically controlled machines, which was made available to the "Henri Coandă" Technological High School, a high school with which we have had a partnership since its foundation.

The campaigns to promote the educational offer and the benefits of dual education, in which COMPA has participated with the "Henri Coandă" Technological High School, have resulted in the constant attraction of students to vocational and technical education.

Year after year, some 55 students have followed the dual education system, with the qualification of numerically controlled machine tool operator or toolmaker, and the technological secondary education system, with the qualification of mechatronics technician.

During the three years of study for dual education students and four years of study for technical high school students, COMPA has provided students with a package of benefits such as: reimbursement of fees for dormitory, meals, transport, provision of school supplies, protective and work equipment, and most importantly, job offers for all graduates.

Risks identified in the Human Resources activity

In Compa, coordinated actions are continuously carried out to target and control the organisation with regard to risks in all areas and at all levels.

With regard to the Human Resources activity, the following risks were identified in the previous year that could lead to the failure or inadequate performance of the HR assurance process:

  • temporary lack of qualified staff for certain activities, either due to lack of supply on the labour market and mismatch of educational offer with labour market requirements, or due to emergency situations (mass sickness, quarantine, etc.);

  • high staff turnover, mainly due to incomplete identification of staff motivation needs and salaries not in line with the local labour market;

  • staff skills below the level required for the job, due to the educational offer not in line with market requirements and due to the failure to properly follow the stages of the training process;

Potential effects of the identified risks can be mainly: delays in the activity of the workshops, i.e. delays in the delivery of products to customers as well as inadequate quality of the work carried out by employees.

Therefore, for risks with high criticality, i.e. high probability of occurrence or significant impact on the company's activity, a number of measures have been taken, such as:

  • Involvement in the development of local technical education by providing resources for dual system education and for technological, high school education;

  • apprenticeship programmes for new employees;

  • effective internships for pupils and students;
  • qualifications / retraining / post-secondary school;
  • career management; succession management for key positions;
  • implementation of teleworking;
  • restricting staff mobility by moving some activities online;

Opportunities identified in the Human Resources activity

In terms of opportunities identified in the HR assurance process, these are:

  • the existence of the "COMPA Vocational Training Centre", whose mission is to align with European training standards and which ensures qualification and retraining, the promotion of modern training techniques and methods and the development of the school-enterprise relationship. Training through the Vocational Training Centre aims to reduce the integration period for new employees, to rapidly acquire skills and experience, to increase the performance of practical training, and to increase knowledge and adaptation to the industrial environment.

  • Involvement in linking the educational offer to the requirements of the labour market. COMPA, through its Director of Management, is a member of the Local Committee for the Development of the Sibiu Social Partnership, a committee that deals with the administrative organisation and policies in the field of education and vocational training. In this capacity, COMPA is actively involved in the elaboration of annual schooling plans for vocational and technical education, in facilitating the conclusion of agreements for the practical training of students, in promoting actions aimed at the transition from school to the workplace with a view to socioprofessional integration and in the elaboration and implementation of projects for the development of vocational and technical education at national/regional/county level

5.5. QUALITY-ENVIROMENT

Compa S.A.'s integrated quality, environment and occupational health and safety policy "

Quality, environment protection, health and safety at work are among the values we care about, being integrated into the long-term development strategy of our organization and are some of the aspects that represent us. We are aware that the quality of products and services, care for the environment, continuous improvement of working conditions and prevention of occupational hazards and involvement in the life of the community to which we belong, in full compliance with the requirements of applicable law, are essential for our success.

By virtue of these things, in order to put them into practice, the important directions in which we act are the following:

5.5.1. Climate impact

  • We are committed to ensuring the neutrality of the carbon footprint of energy supply and production;

  • We make continuous efforts to reduce the carbon footprint caused by the products we supply, our logistics processes and the products we sell.

5.5.2. Energy consumption

  • Our organization has a comprehensive program to improve energy efficiency aimed at reducing energy consumption;

  • We are engaged in a program to diversify energy production with the aim of increasing the share of renewable energy.

5.5.3. Resources management

  • Our cost reduction program focuses on identifying solutions to reduce the consumption of raw materials and materials with a direct impact on the type and amount of waste generated;

  • We are committed to the continuous improvement of wastewater treatment methods and the reduction of pollutants discharged into industrial water;

  • We are firmly committed to the continuous improvement of technologies that allow the capture and reduction of the amount of gases emitted into the atmosphere.

  • The best possible management of the various types of waste is at the heart of our concerns to improve internal processes

5.5.4. The quality of products

We are committed to the continuous improvement of our internal processes and associated services so as to permanently ensure the highest possible quality of products with a direct impact on increasing customer satisfaction and reducing the impact on the environment by reducing the amount of scrap and waste generated.

5.5.5. Health and safety

  • We are committed to the continuous improvement of employee protection systems, with the main objective of continuously reducing the number of accidents and incidents at work

  • We invest significant resources in the protection of the personal data of our employees and partners as well as in the protection of confidential information.

  • We apply the highest standards of work ethic and human rights

  • In order to effectively manage the prohibitions and restrictions imposed on hazardous materials and substances, we are constantly updating the information on these materials in the global IMDS (International Material Data System).

5.5.6. Environmental issues

The company identifies and evaluates the environmental aspects determined by the technologies used, the products made and the services offered.

The main technological processes widely integrate mechanical processing equipment (CNC type) associated with defect detection procedures and statistical control methods; in addition, laser processing technologies, surface coatings, heat treatments, hot or cold processing of materials (forging, pressing), welding, mechanical assembly (partially or fully automated) are used;

The main product groups made in COMPA are: subassemblies and injector components; windscreen wiper subassemblies and components; central crankcases, flanges and rollers for turbochargers; gearboxes; steering column components; arches; stamped, stamped parts; forged parts; cardan transmissions; mechanically welded metal fabrications; components for air conditioning installations; injection system components and valves, dies and tools.

The main services offered are: design and execution of industrial equipment, molds and tools, surface coatings, heat treatments, calibration services and repair of measuring instruments, tests and physico-chemical laboratory analysis, service cardans (EDS), training courses.

Thus, the environmental aspects associated with these technologies, products and services take into account, as appropriate, air emissions, water discharges, soil contamination, waste management, resource consumption, noise, vibration, etc.

Environmental issues are assessed annually and whenever necessary, as a result of changes in execution technologies, the introduction of new raw materials / materials / equipment, changes in legal, regulatory and customer or other stakeholder requirements, specific conditions in points work, etc. Based on these analyzes, the ways of keeping under control the environmental aspects associated with the company's activities are updated.

5.5.7. Goals and targets. Environmental management programs

Annually, at the level of each department, environmental objectives are set that take into account the significant environmental aspects, the compliance obligations and the identified risks and opportunities. In setting environmental objectives and targets, the following are taken into account:

  • the company's activities and services;
  • compliance obligations;
  • significant environmental issues;
  • technological options;
  • material, financial and human resources;
  • Stakeholders' views

The planning of actions for the achievement of environmental objectives is materialized in the Annual Environmental Management Program, whose main objectives at the level of 2021 were:

  • Reduction of resource consumption (electricity, water, compressed air, mineral oils);
  • Reduction of the quantities of waste generated / discharged;
  • Improving the management of hazardous substances and mixtures;
  • Prevention and systematic action in the direction of preventing water, air and soil pollution;

The general strategy for achieving these objectives and on the basis of which the specific actions of the Annual Environmental Management Program are defined includes the following points:

• programs for monitoring and measuring environmental indicators for the prevention and control of emissions into the atmosphere, wastewater, noise, soil pollution, hazardous substances and mixtures, hazardous and nonhazardous waste

  • preventive maintenance programs for relevant installations and equipment;
  • methods for recording maintenance and overhaul requirements;

• environmental management programs with environmental objectives and targets for reducing and controlling pollution

• plans to prevent and combat accidental pollution;

• trainings (courses, operational meetings) through which all staff are aware of the implications of the regulation given by the integrated environmental permit for the company's activity, of all effects on the environment, resulting from normal and abnormal operation of facilities, awareness of the need to report deviation from the conditions of the integrated environmental permit, prevention of accidental emissions and taking measures when accidental emissions occur, awareness of the need to implement and maintain training records;

• reports and notifications to the competent environmental authorities in accordance with the authorizations held by COMPA.

5.5.8. Partnership with the community

We have an active involvement in community life by supporting initiatives related to education, sports and environmental protection.

5.5.9. Management system considerations

Our organization is certified according to the following standards for management systems, with reference to quality, environment and health and safety at work:

  • IATF 16949: 2016: quality management system for the automotive industry;

  • ISO 9001: 2015: quality management system for general industry (non-automotive);

  • ISO 14001: 2015: environmental management system;

  • ISO 45001: 2018: occupational health and safety management system;

The internal performance on compliance with the requirements of the standards, in the 3rd quarter of 2021, is presented below (no notable events occurred):

For the year 2022, Q1:

Management system Target Realized
IATF 16949:2016 93,0% 95,4%
ISO 9001:2015 93,0% 95,4%
ISO 14001:2015 95,5% 94,0%
ISO 45001:2018 95,5% 95,0%

In April 2022, a third party audit was conducted on all four of these systems. As a result, all four management systems have been reconfirmed as effective and efficient.

5.6. RISC MANAGEMENT

General aspects of risk management in the EU

Risk management is one of the key concepts in Compa's management system for achieving the medium and longterm strategy and objectives of the company's activities in all areas.

Within Compa there is a permanent concern for a pragmatic, proactive approach to risk management in order to identify all the categories of risks that may affect the achievement of the company's objectives. An important step in managing risks throughout the company is to identify the types of risks that we know exist at all levels of the company, as well as the consequences that may arise in achieving the objectives set at each level.

At the same time, responsibilities have been established at all levels in order to take specific measures to solve problems arising from the action of these risks.

In order to achieve the objectives set at all levels in the process of risk management , the Top Management of Compa , has taken into account the following specific aspects of first quarter 2022:

The exceptional context for carrying out activities under the quasi-permanent maintenance of the state of alert established in Romania in 2021

The risk of transmission and spread of the SARS virus COV- 2 , among Compa staff, was one of the concerns of management at all levels in 2021. Concrete measures have been established, within the framework of Compa's programme for the protection of employees against Covid-19 , so that the spread of the virus is reduced in 2021. It is worth noting that Compa has not reported any cases of outbreaks of infection, as the infection of employees comes from contacts with people outside the company.

Risk assessment is an ongoing activity at all levels of management within the company, with a focus on :

  • Identification of all categories of risks operating at each level, including new risks that have not previously been identified.

  • Focusing the activity on the action of risks that persist and act on objectives of major importance in the company's activity

  • Quantify the impact of risk action and target actions to counteract or mitigate their effects

  • Delegation of responsibility from Compa's Top Management to all levels of management within Compa's organisational structure:

  • Responsibilities established by decentralisation at the level of profit centres organised within the company and consisting of the management of related risks, strictly for the production sectors for which they are responsible. In this context, the operations managers of these profit centres are responsible for managing risks in the areas of production, quality, technical, maintenance and logistics of the sector for which they are responsible.

  • Responsibilities at the level of the central departments of the company, with a company-wide area of responsibility in areas such as : Research & Development ; Marketing - Sales ; Purchasing ; Human Resources ; Quality - Environment ; Finance - Accounting and Controlling.

Permanent monitoring of the impact of the action of each risk category on the economic and financial activity of the company

Half-yearly analyses by Compa's Top Management, with the responsible stakeholders within the company, in which the different categories of risks are also analysed, in order to establish the causes and the impact of the risks on the financial activity, as well as the measures to be taken to avoid or limit the economic effects generated by those risks.

5.6.1 Risks in operational activity at profit centre level

Risks arising from failure to meet resource requirements at certain times of the year

  • failure to ensure that the production capacities required to meet the volumes required in excess of the initial forecasts, ordered in certain periods, are available on order.

    • Temporary shortages of materials or tools are a risk to be taken into account, especially in a year with major supply chain disruptions.
    • The provision of the necessary personnel, especially directly productive workers, operators on CNC machines, is the biggest problem faced by Compa in the first quarter of 2022. The shortage of personnel, especially skilled workers, is acutely felt in the Sibiu area as well as in other regions of Romania. In order to counteract the risk of non-delivery of products ordered by customers, the production of products urgently needed by customers was organized in certain periods of the year 2022, during the days of weekly rest (Saturday or Sunday), with a major impact on salary costs, due to the payment of overtime at double rate on weekends.
    • The risk of production interruptions due to power cuts from suppliers is another risk in the operational activity, which occurs quite rarely, but due to the sensitivity of the state-of-the-art machine tools in Compa's equipment, major damage is caused: product rejects, tool breakages, interruptions for adjustment, etc. Unfortunately, the risk of such situations cannot be prevented and the impact on costs is borne by Compa, with no possibility of recovering the damage from the electricity supplier.
    • The risk of not achieving planned production ratios with potential impact on deliveries to customers is a risk that can have an impact on the timely delivery of production to customers and can be mitigated or eliminated by urgent operational actions such as :
  • o readjustment of manufacturing schedules on manufacturing lines

  • o o recovering delays through measures to reduce packaging and transport times
  • o of finished products.

All these categories of risks are the responsibility of the operations managers of each profit centre, supported by the support functions assigned to each profit centre.

We appreciate that those punctual situations have been managed in real time in order to avoid major risks that may arise in the non-delivery of products to customers on time.

During the quarter 1 2022 in Compa, there were no situations recorded that some customers were stopped due to such causes.

In the automotive industry, any delay of this kind can lead to a chain blockage with major effects on car manufacturers with unpredictable repercussions.

Efforts by the company to avoid such situations to avoid blocking the production of final customers are carried out with costs higher than those provided for in the price quotations, i.e. by exceeding the planned costs of: wages direct and indirect production staff, transport of raw materials and finished products, technological losses above the level allowed in the price quotations and other expenses with an impact on the level of profitability of the company.

5.6.2. Risks with a general impact on the whole business

The management of these categories of risks falls under the responsibility of the organisational structures at the higher management levels of the company, having a scope and influence on the activity of the whole company. The risk categories with an impact on the activity of most firms are :

Price riks

It was the risk with a major adverse impact , recorded in the economic - financial activities of Compa in the second part of 2021, but also contuna in the first quarter of 2022.

The unprecedented increase in utility prices , starting from June 2021 , in particular the price of electricity and methane gas , had a dramatic effect on the cost of utilities included in the delivery prices of manufactured products and implicitly on the degree of profitability of the production carried out , as well as on the financial statements for Quarter 1 2022

The increase in the price of utilities at material suppliers generated chain increases in the price of basic materials: steels, chemicals, maintenance spare parts, etc. , which inevitably led to an increase in the cost of raw materials and materials purchased from suppliers. Unfortunately, Compa's efforts to thwart this explosive increase in prices from energy suppliers as well as from suppliers of basic materials (steels in particular) have been to no result.

• Despite the fact that Compa immediately went to its customers to ask for an increase in the prices of manufactured products, with the influences of the increase in the price of electricity, methane gas and basic materials, unfortunately the negotiation process was delayed by Compa's customers, who were forced to bear most of these unfavourable influences. The explosive increase in the price of utilities , at a level difficult to predict

by the contracts concluded with customers , without legal possibilities to recover these influences , was the main cause of the worsening financial situation of Compape quarter 1 2022.

Credit risk

Credit risk had no impact on Compa's economic and financial activity in 2021.

During the first quarter of 2022, the amount of 721.713 euro was repaid in accordance with the agreed repayment schedule with the financing banks (ING Bank and BRD), and the contractual obligations with these banks were honoured without any problems, and there was no risk of repayment on time.

Liquidity risk

During the quarter of 2022, there was no risk at any time in Compa of not ensuring financial liquidity in order to ensure the smooth running of the company's business.

Compa's business partners, the overwhelming majority of which are prestigious multinational companies with well-known financial strength and which have not had any problems during the years of collaboration with them, related to the impossibility of paying invoices when due.

Currency risk

In recent years, as a result of the permanent monitoring carried out in this area by the NBR, there has not been a very high volatility in the evolution of the RON/EUR exchange rate, which is of particular interest to us.

In order to eliminate this currency risk, Compa decided to negotiate sales prices with customers in euro. As a result, the exchange rate risk is eliminated to an overwhelming extent, since raw materials and materials from suppliers are also purchased in euros, and most of these materials and tools are imported and paid for in euros.

• Investment risk

In Q1 2022 , Compa's investment program , was at a more moderate level , compared to previous years , when the firm's investment spending was at a very high level. Therefore the sources of investments were mainly directed to the consolidation of existing production capacity , to the replacement of out-of-service machinery or to the elimination of existing bottlenecks on certain production lines .

• Risks related to changes in tax legislation

Lack of predictability in tax legislation has a major impact on the economy as a whole, affecting both private and state-owned firms.

Any legislative change in the economic field with immediate application generates changes in all areas of company activity (budgets, business plans, forecasts, etc.).

Fortunately, in the last period the legislative initiatives to amend the legislation in the economic field have been more moderate, compared to previous years, so that we can assess that in 2021, legislative changes did not constitute major risks in the conduct of the company's activity.

5.6.1. INVESTMENTS, NEW PRODUCTS AND RESEARCH AND DEVELOPMENT ACTIVITY

5.6.2. INVESTMENTS:

The investment activity used funds for:

  • purchase of machinery;
  • modernisation of existing machinery and installations;
  • improvements to production premises.
  • The funds necessary for carrying out the investment activity in the amount of 7,867,069 lei for 39 months of 2022 were provided from own sources and European funds. The economic effects through the purchase of new machinery and technological lines are:
  • increase in labour productivity;
  • reduction of repair costs;
  • improvement of technological flow;
  • increased quality of manufactured parts and reduced rejects;
  • reduction of energy consumption;
  • increase the precision of parts machining;
  • increased machine operational safety;
  • reduction of non-quality costs;

• increase the efficiency of the activity through operability, etc.

5.6.3. NEW PRODUCTS

he technical and R&D function has as its main objective the development of new products and is deeply involved in defining and adopting the most efficient technological processes so that the price offers presented to customers are as attractive as possible in order to win as many projects as possible.

In this activity there are important requests for quotation for products specific to Compa's manufacturing profile. In this context, in recent years, our concerns have been directed towards offering non-Diesel or even nonautomotive products, in order to ensure a portfolio of new, diversified products that are less vulnerable to the profound changes that have taken place in the automotive sector and beyond.

These are the reasons why Compa has also focused on the production of complex, high added value components for the machine tool manufacturing industry. The business partnership with one of the leading players in the machine tool manufacturing industry - DMG Mori is a good start to penetrate this non-automotive product market. The move into the production of complex machine tool products, i.e. the manufacture of cabs for CNC machines supplied to machine tool manufacturers, is a positive, promising element in the development of business in this new field for COMPA.

In Q1 - 2022 the manufacturing of new products for which the necessary production capacities have been secured continued, with an impact on production in the following period as well

These products include:

  • injection pump body for VW and PSA petrol cars;

  • distributors for hydraulic steering system;

  • Cap Nut si Nozzle, which are components in the EURO 7 injector assembly for commercial vehicles;

5.6.4. RESEARCH AND DEVELOPMENT ACTIVITY

A Research and Development Centre has been set up in Compa since 2019, where the foundations for the production of products of a high technical and quality level are being laid.

In this R&D Centre, new projects and processes with applicability both within the company and also projects with advanced technology that can be made available to other companies are also carried out.

For example, here are a few projects from the R&D Centre:

  • development of the process for the production of electrodes for electrochemical deburring used in the manufacturing processes of the "GDI pump body" and "Distributor in the hydraulic steering system";

  • development of the tools needed to improve the quality of the "Nozzle NNC" Repertype";

R&D expenditure includes:

  • applied research expenditure carried out within the Research Centre with European funds and COMPA's own resources.

  • expenditure on the development of new products, construction and technological design expenditure, including expenditure on the monitoring of new products and processes, up to the transition to series production.

  • expenditure incurred by COMPA's technical specialists who carry out technological design operations with a view to drawing up price quotations, including those quotations which for various reasons do not result in the company being nominated by customers.

6. CAPITAL MARKET

The company's shares have been traded since June 1997 on the regulated market administered by the Bucharest Stock Exchange. The nominal value of one share is 0.10 lei.

Main characteristics of the issued securities: 218,821,038 registered, ordinary, fully paid shares of equal value, issued in dematerialized form and evidenced by registration in the Register of Shareholders managed by the Central Depository S.A. Bucharest. COMPA is registered under ISIN code ROCMPSACNOR9, stock exchange symbol CMP, in the Standard category.

On 31.03.2022 the company had 7,365 shareholders, individuals and legal entities, Romanian and foreign, according to the Consolidated Register received from the Central Depository S.A. Bucharest.

Individuals - 155,302,569 shares

Legal entities - 63,518,469 shares

Change in average selling price and number of shares traded in Q1 2022

6.1. On the distribution of dividends to COMPA shareholders for the financial year 2020 and 2021

The privatisation of COMPA has opened up important prospects and opportunities for the company's development.

After 1990, the company's main objective was to establish partnerships with prestigious companies in the automotive industry, where it had the necessary expertise.

In this context, cooperation relationships were started and established with Krupp, Piroux, Honeywell -Garrett, Bosch, Delphi, Koyo (today Jtekt) Fuji Kiko, Douglas, etc., for whom COMPA became a supplier of components.

The company was equipped with machines and equipment with a high degree of physical and moral wear. A longterm development programme was needed to rehabilitate the existing halls and, in particular, to purchase stateof-the-art machinery and equipment.

COMPA has therefore made significant investment expenditure each year, both from its own sources and from loans to finance this development programme.

This was the only reason why COMPA did not distribute dividends, the net profit being allocated exclusively to the development of the company.

The AGM resolution of 22.04.2021 approved the granting of dividends from the annual net profit for the financial year 2020. The amount of dividends distributed was RON 2,803,856.15 with a gross dividend/share of RON 0.0132. The date of payment of dividends in the amount of RON 2,803,856.15 was set for 9 June 2021. The distribution of dividends to shareholders has become a necessity, after 15 years in which the net profit was distributed exclusively for the development of the company. The distribution of dividends has also been a requirement of the company's shareholders (manifested for several years) and an obligation of the Company towards its shareholders, who have supported the company's development policy for many years.

The decision to grant dividends led to an increase in CMP's share price, which reached a maximum value of 0.7467 lei during the financial year 2021.

There was also an increase in trading volume after the publication of the AGM notice proposing the distribution of dividends.

In addition, the AGM notice published on 11.03.2022 proposes on the agenda the granting of dividends from the annual net profit for the financial year 2021 to shareholders registered in the Shareholders' Register on 20.05.2022. The amount of dividends proposed to be distributed is RON 3,026,849.33 with a gross dividend/share of RON 0.0143. The date of payment of dividends in the amount of RON 3,026,849.33 has been fixed for 14 June 2022.

6.2. Buying your own shares

By the resolutions of the AGEA no. 18 and 19 of 27.04.2020 on the proposal of the Board of Directors, the share buyback program was approved, in the amount of 3.89 million lei.

As of 13.08.2020, the Company has started the share buyback programme in accordance with the Resolution. AGEA 18 and 19 dated 27.04.2020

Size of the program: repurchase from the market of a maximum number of 15,000,000 own shares. The proposed acquisition price is:

  • Minimum price per share: 0.1 lei
  • Maximum price per share: 1 lei

Maximum monetary value allocated to the programme: RON 3,890,000, excluding brokerage commissions and other acquisition costs. Payment for the repurchased shares will be made, in accordance with the provisions of Article 1031 of Law 31/1990, from the distributable profit of the company, entered in the financial statement for 2019.

Duration of the programme: 18 months from the date of publication of the decision in the Official Gazette of Romania, part IV , (the decisions were published in the Official Gazette no.1712/15.05.2020).

The OGMS resolution of 09.09.2021 approves the implementation of a stock option plan with respect to the shares subject to the repurchase program approved by AGEA resolutions no. 18 and 19 of 27.04.2020, with the objective of granting option rights for the acquisition free of charge by employees and members of the Company's management of the repurchased shares in order to maintain and motivate them as well as to reward them for their work within the Company. At the same time, it is approved to empower the Board of Directors to adopt all necessary measures and carry out all formalities required for the implementation of the share buyback plan and to establish the criteria for granting option rights.

By decision of the Board of Directors no. 92/13.08.2021 it was decided to start the buyback programme. It was carried out from 17.08.2020 to 15.11.2021, and investors were informed about its completion by the current report dated 16.11.2021. Thus, 6,504,153 shares, representing 2.9723% of COMPA's share capital, were repurchased in 2020 and 2021, as follows:

  • Total value of share buyback: 3,878,223.52 lei

  • Average price/share: 0.5962 lei/share

In accordance with the decision of the Board of Directors no. 83/04.10.2021, the stock option plan was approved, registered under no. 81/30.09.2021 in the Register of Decisions of the Company. According to the plan, based on

allocation criteria, options are granted under the plan for 6,500,000 shares to executive directors and key employees of the Company. The option exercise deadline is 08.11.2022.

6.3. Relations with shareholders and investors

Shareholders/investors can obtain information about COMPA and key events on the website www.compa.ro

COMPA has also been aiming in Q1 2022 to ensure the rights of shareholders, to attend General Meetings directly or by proxy by providing them with special/general proxies, postal ballot papers, other useful information, to be treated fairly regardless of their shareholdings.

In relation to the capital market, the company has also fulfilled in the first quarter of 2022 all reporting obligations that have arisen from the legal provisions by publishing the mandatory continuous and periodic reports in the electronic system of the Financial Supervisory Authority and the Stock Exchange as well as on the company's website.

In accordance with the provisions of the Corporate Governance Code, continuous and periodic information was disseminated simultaneously in both Romanian and English.

6.4. Capital and management issues

A new Board of Directors consisting of 5 members was elected by the AGM resolution of 22.04.2021.

There were no changes affecting the company's capital or administration in the first quarter of 2022. At the same time, COMPA was not unable to meet its financial obligations.

There were no major transactions entered into by the company with persons with whom it acts in concert or in which such persons were involved during the relevant time period.

6.5. Relationship between parent company and affiliated companies

Compa Parent Company prepares and publishes consolidated financial statements in accordance with applicable accounting regulations for the financial year ended 31.12.2021.

In this context, the Company - parent Compa has control, i.e. the share of its equity interests in the share capital of affiliated companies is more than 50% in the following affiliated entities:

7. THE COMPANY MANAGEMENT

7.1. Board of Directors

On 22.04.2021, following the expiry of the term of office of the members of the Board of Directors, the Ordinary General Meeting of Shareholders approved the election of a Board of Directors for a four-year term consisting of the following members:

NAME AND SURNAME FUNCTION
DEAC Ioan Executive Director / Chairman of the Board
MICLEA Ioan Executive Administrator
MAXIM Mircea Florin Non-Executive Administrator
BALTEŞ Nicolae Independent non-executive administrator
NEACŞU Vlad- Nicolae Non-Executive Administrator

Members of the executive management of the company and the directors on function of the company:

List of the executive management and the directors on functions:

NAME AND SURNAME FUNCTION
DEAC Ioan Chairman of the Board / Director General
FIRIZA Ioan Director Organisational Management and UK
BĂIAŞU Dan-Nicolae Commercial Director
ACU Florin-Ştefan Technical Director
MUNTENAŞ Bogdan-Vasile Logistics Director
ŢUICU Liviu-Laurenţiu Director Quality - Environment
HERBAN Dorin – Adrian Director Management Systems and Improvement
DUMITRESCU Mihaela Economic Director
DUMITRESCU Cosmin Ştefan Director Industrial Engineering
ŢUŢUREA Mihai Director Production Coordinator
FIRIZA Sorin Ioan Deputy Production Director
DRAGOMIR Marius C-tin Chief Engineer - Maintenance

7.2. Audit Committee

In accordance with the updated Law no. 31/1990, the Audit Committee comprises members with the necessary expertise in the field of financial auditing and accounting. The Audit Committee, consisting of two members of the Board of Directors, provided support to Compa's management bodies in matters of internal control and financial reporting. The two members of the Audit Committee are: Mr Nicolae BALTEȘ - Chairman and Mr Vlad Nicolae NEACȘU - Member..

8. TRANSACTIONS WITH AFFILIATED ENTITIES

During Q1-2022, Compa did not carry out any major transactions either with affiliated companies within the Group to which it belongs or with other companies holding stakes in the share capital of COMPA.S.A.

The affiliated entities of Compa S.A. Sibiu were set up over time as a result of the need to outsource specific activities such as software design, domestic and international car transport, catering, etc., to Compa S.A., in order to make these activities more efficient and to be able to benefit from certain facilities granted by the State for certain activities (IT activity, transport licences, etc.).

The majority of transactions and contracts with these affiliated entities represent the provision by Compa (the owner of special and specific facilities) of utilities such as electricity, heat, drinking water, telephone services, compressed air, the rental of premises and equipment necessary for the performance of the activity as well as contracts for the supply of goods and services.

On the other hand, these affiliated entities provide Compa with goods and services which constitute their object of activity and for which outsourcing was required.

The relationships were conducted on commercial terms of the free market, the price of which was agreed by negotiation, within the levels practiced on the market.

9. STATEMENT OF COMPLIANCE OF THE INDIVIDUAL INTERIM FINANCIAL REPORT

DECLARATION

in accordance with the provisions of Article 30 of the Accounting Act No. 82/1991

Quarterly financial reports as at 31.03.2022 have been prepared for:

_____________
Entity: COMPA S.A.
County: 32 SIBIU
Address: Sibiu, str. Henri Coandă, nr. 8, țel. 0269/239400
Trade register number: J 32/129/1991
Form of ownership: 34 Joint stock company
Main activity
(CAEN class code and name): 2932 - Manufacture of other parts and accessories for motor vehicles and their
engines

Unique registration code: RO 788767

The undersigned Mihaela DUMITRESCU,

in accordance with Article 10(1) of the Accounting Act No 82/1991, as Economic Director, I assume responsibility for the preparation of the quarterly financial reports as at 31.03.2022 and confirm the following:

__________________________________________________________________________________________

a) the accounting policies used in the preparation of the quarterly financial reports are in accordance with the applicable accounting regulations.

b) the quarterly financial reports give a true and fair view of the financial position, financial performance and other information relating to the business.

(c) the legal entity carries on its business on a going concern basis.

Economic Director,

Mihaela DUMITRESCU

INDIVIDUAL INTERIM FINANCIAL REPORT AS AT 31.03.2022 UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31.03.2022

Assets : (all amounts are expressed in RON, unless otherwise specified) Nota 31.03.2022 31.12.2021
Fixed assets:
Property, plant and equipment 4.1 406,302,740 409,007,936
Investment property 4.2 40,663,651 41,826,695
Intangible fixed assets 5 8,937,132 9,106,443
Other receivables (grants and settlements from joint
ventures) 6 216,000 270,000
Other fixed assets 7 1,033,316 619,346
Financial investments 20 20,715,500 20,715,500
Deferred tax assets 10 0 122,843
Fixed assets - total 477,868,339 481,668,764
Current assets:
Inventories 8 131,278,338 142,270,307
Trade and other receivables 6 184,398,690 141,019,577
Other receivables (subsidies and settlements from joint
ventures) 6 4,434,781 5,207,396
Cash and cash equivalents 9 1,270,602 11,068,357
Active circulante - total 321,382,412 299,565,637
Total active 799,250,751 781,234,401
Equity:
Issued capital 11 21,882,104 21,882,104
Share capital adjustments 11 -650,415 -650,415
Reserves 11 372,114,826 372,044,705
Reserves adjustment 23,122,057 23,122,057
Retained earnings 11
11 80,945,927 65,886,960
Current result 11 1,388,476 15,058,967
Equity - total 499.818.513 487.637.511
Long-term debt :
Financial debts 12 112,815,030 102,292,751
Prepaid income (prepaid income, subsidies) 13 25,287,119 26,193,210
Provisions 14 243,925 224,645
Long-term liabilities - total 138,346,074 128,710,606
Current debts:
Financial debts 12 14,280,095 14,284,425
Trade and similar payables; 13 120,164,896 112,731,018
Debts from contracts with customers 13 6,056,090 9,051,042
Other payables 13 16,179,696 12,997,582
Current tax liabilities 10 0 0
Prepaid income (prepaid income, subsidies) 13 5,420,925 6,115,351
Current liabilities - total 162,101,702 155,179,418
Total debts 300,447,776 283,890,023
Total equity and debt 799,250,751 781,234,401

UNCONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME AS AT 31.03.2022

(all amounts are expressed in lei. unless otherwise stated)

Nota 31.03.2022 31.03.2021
Income 15 198,373,767 181,363,841
Other income 15 4,409,282 4,152,489
Total income 202,783,049 185,516,330
Change in stocks of finished goods and work in progress 16 -10,876,646 -605,076
Raw materials and consumables used 16 -125,234,873 -118,934,691
Employee benefits expense 17 -37,012,622 -34,262,478
Depreciation and amortisation expense 4,5,16 -11,954,568 -10,432,162
Services rendered by third parties 16 -11,071,145 -8,730,674
Other expenses 16 -4,253,071 -4,274,706
Total expenses -200,402,925 -177,239,787
Operating result 2,380,124 8,276,543
Financial income 18 7,713 470
Financial expenses 18 -420,640 -251,812
Other financial gains/losses 18 -46,670 -18,508
Net financing costs -459,598 -269,850
Profit before tax 1,920,526 8,006,693
-287,153 590,012
(Expenses)/Income on deferred income tax 10 -244,897 -1,121,950
Current income tax expense 10 -532,050 -531,938
Net profit for the period 1,388,476 7,474,755
Other comprehensive income:
Of which other comprehensive income items not
subsequently reclassified to profit or loss:
Income tax relating to other comprehensive income 10 70,121 70,599
Other comprehensive income, net of tax 70,121 70,599
Total comprehensive income for the year 1,458,597 7,545,354
Unconsolidated result per basic/diluted share 19 0.01 0.03

RAPORT INDIVIDUAL T1 - 2022

UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY CAPITAL AS AT 31.03.2022

(all amounts are expressed in lei. unless otherwise specified)

Share Adjustments Legal Adjustments Revaluation Other Adjustments Reported Total
Equity element capital to share reserves to legal reserve reserves other result
capital reserves reserves
Balance
01.01.2021
21,882,104 -185,428 4,376,421 22,679,066 83,891,130 285,860,412 442,991 68,690,815 487,637,511
Profit for the year 15,058,967 15,058,967
Other comprehensive income,
of which:
0 0 0 0 0 282,010 0 0 282,010
Income tax relating to other
comprehensive income
282,010 282,010
Transactions with
shareholders, recognised
directly in equity, of which:
0 -464,987 0 0 0 -2,365,268 0 -2,803,855 -5,634,110
Repurchase of own shares -464,987 -464,987
Losses related to repurchase of
own shares
-2,365,268 -2,365,268
Profit
distribution
0 0 -2,803,855 -2,803,855
Balance
la 31.12.2021
21,882,104 -650,415 4,376,421 22,679,066 83,891,130 283,777,154 442,991 80,945,927 497,344,378
Share Adjustments Legal Adjustments Revaluation Other Adjustments Reported Total
Equity element capital to share reserves to legal reserve reserves other result
capital reserves reserves
Sold la 01.01.2022 21,882,104 -650,415 4,376,421 22,679,066 83,891,130 283,777,154 442,991 80,945,927 497,344,378
Profit for the year 1,388,476 1,388,476
Other comprehensive income,
of which: 0 0 0 0 0 70,121 0 0 70,121
Income tax relating to other
comprehensive income 70,121 70,121
Sold la 31.03.2022 21,882,104 -650,415 4,376,421 22,679,066 83,891,130 283,847,275 442,991 82,334,403 498,802,974

UNCONSOLIDATED STATEMENT OF CASH FLOWS AS AT 31.03.2022

(all amounts are expressed in lei. unless otherwise stated)
------------------------------------------------------------- --
EXPLANATIONS 31.03.2022 31.03.2021
Cash flows from operating activities
Profit before tax 1,920,526 8,006,693
Depreciation and impairment of fixed assets 11,904,361 10,383,534
(Increase) / Decrease in inventories 10,991,969 -4,108,686
(Increase) / Decrease in receivables -42,966,468 -23,237,781
(Increase) / Decrease in accounts payable 7,621,041 21,719,350
Adjustment other non-monetary items -1,499,425 -8,213,447
Net cash generated from operations -12,027,996 4,549,663
Cash flows from investing activities
Purchases of tangible fixed assets -7,664,774 -5,925,192
Purchases of intangible assets -202,295 -426,912
Net cash generated from operations -7,867,069 -6,352,104
Cash flows from financial activity
(Increases) / Decreases bank loans 10,517,950 6,109,204
Interest payments -420,640 -251,812
Net cash generated from financial activity 10,097,310 5,857,392
Net cash generated from total activity -9,797,755 4,054,951
Cash and cash equivalents at beginning of period 11,068,357 887,887
Cash and cash equivalents at end of period 1,270,602 4,942,838

NOTES TO THE UNCONSOLIDATED INTERIM FINANCIAL REPORT AS AT 31.03.2022

(all amounts are expressed in lei. unless otherwise stated)

1. GENERAL INFORMATION

COMPA is a joint-stock company based in Sibiu. 8 Henri Coandă Street, CP 550234.

1.1. Scope of activity

The principal activity according to CAEN is 2932 - Manufacture of other parts and accessories for motor vehicles and their engines.

1.2. Form of ownership

COMPA S.A. has been 100% privatised since September 1999. The company is listed. The shares have been traded on the Bucharest Stock Exchange since June 1997. and are currently traded under the Standard category. symbol CMP.

1.3. Evolution of the company

By Government Decision No. 1296/13.12.1990, the company became Societatea Comercială COMPA S.A.. originating from the Sibiu Auto Parts Company (I.P.A.Sibiu). I.P.A.Sibiu was founded in 1969 by merging two units: Uzina Elastic and Uzina Automecanica Sibiu. Since 1991. COMPA was organized in factories / workshops. constituted by product families. as cost centres. which in time became profit centres. with the aim of decentralization and facilitating the establishment of joint ventures.

2. BASIS OF THE PREPARATION

Declaration of conformity

The individual financial statements have been prepared in accordance with the International Financial Reporting Standards adopted by the European Union and the Order of the Minister of Public Finance No. 2844/2016. The Company has adopted IFRS reporting as from the financial statements of 2012.

Going concern principle

The individual financial statements have been prepared on a going concern basis. which means that the Company will be able to carry on its business in normal conditions.

Basis of evaluation

The separate financial statements have been prepared on the historical cost basis. except for certain property, plant and equipment which are measured at revalued amount or fair value as explained in the accounting policies. Historical cost is generally based on the fair value of the consideration given for the assets.

Reporting and functional currency

The individual financial statements are presented in Romanian lei (RON). rounded to the nearest amount. this is the Company's functional currency.

3. SIGNIFICANT ACCOUNTING POLICIES

The individual financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("EU")

The significant accounting policies applied by the Company are those disclosed in the Financial Statements ended 31.12.2021 and have not changed during the interim reporting period.

4.1. TANGIBLE FIXED ASSETS

The evolution of property, plant and equipment from 1 January 2022 to 31 March 2022 is as follows:

Explanations Valoare contabila la
31.03.2022
Valoare contabila la
01.01.2022
Land 43,848,700 43,848,700
Construction 95,086,518 95,347,181
Equipment and vehicles 238,821,221 233,750,477
Other tangible fixed assets 767,253 731,794
Tangible fixed assets in course of
construction
27,779,049 35,329,784
Total 406,302,740 409,007,936

Tangible assets representing 'Tangible assets in progress' are valued at historical cost. The Company has chosen the fair value revaluation model for the valuation of property, plant and equipment in the nature of land and buildings. In the fair value hierarchy, the revaluation of the Company's land and buildings at fair value is classified as Level 2 data.

The valuation technique used in Level 2 fair value measurement is the price comparison method. Comparable prices of nearby buildings and constructions are adjusted for specific characteristics such as property size, etc. The most important input for this valuation method is the price per square metre.

There were no transfers between the level at which the fair value valuations are classified during 2022.

Depreciation of all property, plant and equipment is determined using the straight-line method.

Fixed assets purchased from third parties in 2022 were worth 5,006,281 lei and the value of those selfconstructed was 2,572,431 lei.

Fixed assets were reduced in 2022 through depreciation.

4.2. REAL ESTATE INVESTMENT

The evolution of real estate investments from 1 January 2022 to 31 March 2022 is as follows:

Explanations Valoare contabilă la
31.03.2022
Valoare contabilă la
01.01.2022
Real estate investments 40,437,512 41,686,356
Real estate investments in progress 226,139 140,339
Total 40,663,651 41,826,695

Investment property is valued at fair value. A gain or loss arising from a change in the fair value of investment property is recognised in profit or loss in the period in which it arises.

Non-current assets 'Investment property in progress' are measured at historical cost.

In 2022 investment property was decreased by the transfer of a building to the property, plant and equipment class , as a result of a change in the purpose of its use.

5. INTANGIBLE FIXED ASSETS

Intangible assets held by the Company represent software and software licenses and research and development expenditure that have met the conditions for capitalisation.

Explanations Valoare contabilă la
31.03.2022
Valoare contabilă la
01.01.2022
Research and development expenditure 4,293,983 4,432,128
Software and software licences 4,643,148 4,674,315
Total 8,937,132 9,106,443

Amortisation of intangible assets is determined using the straight-line method.

6. TRADE AND OTHER RECEIVABLES

The situation of the receivables held by the Company is as follows:

Explanations Valoare contabilă la
31.03.2022
Valoare contabilă la
01.01.2022
Trade receivables 175,602,723 131,503,172
Advances paid to suppliers 3,573,370 3,775,137
Receivables from staff 3,300 3,611
Receivables from the consolidated state and local
budget
4,012,751 4,206,772
Sundry debtors 199,380 171,319
Prepaid expenses 1,007,166 1,359,566
Subsidies receivable (European funds projects,
subsidies for personnel costs)
4,650,781 5,477,396
Total 189,049,471 146,496,973

Claims in foreign currency are valued in lei at the official exchange rate of the NBR on 31.03.2022.

The situation of the impairment adjustments on trade receivables is as follows:

Sold at 01.01.2022 361,522
Adjustments accrued at 31.03.2022 78,511
Adjustments reversed at 31.03.2022 -3,468
Sold at 31.03.2022 436,565

The situation of the impairment adjustments for uncollected debtors is as follows:

Sold at 01.01.2022 839,069.00
Adjustments accrued at 31.03.2022 41,356.00
Adjustments reversed at 31.03.2022 0.00
Sold at 31.03.2022 880,425.00

The Company's commercial policy requires the recording of impairment adjustments for receivables exceeding 365 days, with the exception of those receivables due from partners to whom the Company is also a debtor, which are approximately the same age as uncollected receivables.

7. OTHER NON-CURRENT RECEIVABLES

Non-current receivables held by the Company are shown below:

Explanations 31.03.2022 01.01.2022
Guarantee for customs clearance at home 103,000 103,000
Other guarantees 15,481 15,459
Amounts owed by subsidiaries 914,835 500,000
Interest on amounts due from branches 0 887
Total other assets 1,033,316 619,346

8. STOCKS/Inventory

The structure of inventories held by the Company is shown in the table below:

Explanations 31.03.2022 01.01.2022
Raw materials 52,372,878 52,144,331.00
Materials and packaging 25,014,666 25,324,905.00
Semi-manufactures and work in progress 41,930,276 42,857,109.00
Finished products and goods 11,960,518 21,943,962.00
Total Inventories 131,278,338 142,270,307.00

9. CASH AND CASH EQUIVALENTS

Cash and cash equivalents are as follows:

Explanations 31.03.2022 01.01.2022
Bank accounts in RON 1,114,087 10,864,690.00
Bank accounts in foreign currency 116,661 112,120.00
Cash equivalents 499 79,909.00
House in RON 39,355 11,638.00
Total disponibilităţi băneşti si echivalenţe 1,270,602 11,068,357.00

The company holds accounts in lei and foreign currency with the following banking institutions: BRD Group Societe Generale, ING Bank, Treasury.

10 PROFIT TAX

The Company's current income/profit tax is determined based on statutory profit adjusted for non-deductible expenses and non-taxable income at a rate of 16% for 3 months 2022 and 3 months 2021. At 31 March 2022 and 31 March 2021 the profit tax is made up of:

Explanations 31.03.2022 31.03.2021
Current income tax cheating -244,897 -1,121,950
Deferred income tax assets/liabilities -287,153 590,012
Total income tax -532,050 -531,938

11 EQUITY CAPITAL

The shareholding structure on 31.03.2022 is as follows

% din total capital
Explanations Nr. Actiuni social
Deac Ioan 41,585,887 19.0045
Miclea Ioan 41,042,480 18.7562
Individual shareholders 72,674,202 33.2117
Shareholders legal entities 63,518,469 29.0276
Total number of shares 218,821,038 100.0000

The Company's shares have a nominal value of 0.1 RON/share. Since June 1997 the Company's shares are traded on the Bucharest Stock Exchange in the Standard category.

As of 13.08.2020, the Company has started the share buyback program in accordance with the OGMS Decisions 18 and 19 dated 27.04.2020.

Size of the programme: repurchase from the market of a maximum of 15,000,000 own shares The proposed share buyback price is:

  • minimum price per share: 0.1 lei
  • maximum price per share: 1 lei
  • On 15.11.2021 this process was completed with the following results:

-number of repurchased shares: 6,504,153

  • average purchase price: 0.5962 lei/share

  • total value of repurchased shares: 3,878,223.52 lei

The shares were repurchased for free distribution to the members of the company's management and company's employees, in order to increase their loyalty, as well as to reward them for their activity within the company.

By the resolutions of the Board of Directors no. 83/04.10.2021 and 85/05.10.2021, the Stock Option Plan was approved for the allocation to employees and members of the management of option rights for the acquisition, free of charge, of 6,500,000 repurchased shares.

The Company's equity includes the following:

Explanations 31.03.2022 01.01.2022
Subscribed and paid-up capital 21,882,104 21,882,104
Treasury shares -650,415 -650,415
Losses on redemption of own shares -3,239,570 -3,239,570
Revaluation reserves 83,891,130 83,891,130
Legal reserves 4,376,421 4,376,421
Adjustment of legal reserves 22,679,066 22,679,066
Other non-distributable reserves - repurchase of
own shares
3,890,000 3,890,000
Other reserves 288,631,704 288,631,704
Adjustment other reserves 442,991 442,991
Current and deferred income tax recognised in
equity
-5,434,859 -5,504,979
Retained earnings representing realised surplus on
revaluation reserves
57,804,936 57,804,936
Retained earnings from first-time adoption of IAS,
less IAS 29
29,144 29,144
Retained earnings arising from the transition to
IFRS, less IAS 29
8,611,538 8,611,538
Retained earnings from changes in accounting
policies
89,693 89,693
Retained earnings from first-time adoption of IAS
29
-648,352 -648,352
Retained earnings - prior year retained profit 15,058,967 0
Profit current year 1,388,476 15,058,967
Total equity 498,802,974 497,344,378

12. FINANCIAL LIABILITIES

Long and short-term financial liabilities are as follows:

EUR
Credit institution Type of loan 31.03.2022 01.01.2022
BRD Group Societe Generale
România
Credit line for production 7,394,844 6,173,527
BRD Group Societe Generale
România
IInvestment credit 6,031,008 6,407,947
ING Bank-Sibiu Production credit line 6,406,410 4,772,571
ING Bank-Sibiu Investment credit 5,861,169 6,205,943
Total financial liabilities 25,693,431 23,559,988

Financial liabilities in foreign currency are valued in lei at the official exchange rate of the NBR on 31.03.2022.

11. TRADE AND OTHER PAYABLES

Explanations 31.03.2022 01.01.2022
Suppliers 119,960,780 112,547,524
Advances received from customers 204,115 183,494
Debts from contracts with customers 6,056,090 9,051,042
Liabilities related to personnel 8,984,756 5,809,380
Debts to the general consolidated state and local budget 6,493,738 6,351,650
Current income tax liabilities 0 0
Dividends payable 183,815 203,982
Sundry creditors 517,387 632,570
Prepaid income 1,481,278 1,776,045
Investment subsidies from AMPOSDRU and AMPOSCEE contracts 29,179,502 30,476,500
Inventory gains on fixed assets 47,264 56,016
Total trade and other payables 173,108,726 167,088,203

Foreign currency liabilities are valued in lei at the official exchange rate of the NBR on 31.03.2022.

14. PROVIZIONS

The situation of the provisions set up by the Company is presented below:

Explanations 31.03.2022 01.01.2022
Provisions for guarantees to customers 26,945 26,945
Provisions for employee benefits 108,700 108,700
Other provisions for risks and charges 108,280 89,000
Total provisions 243,925 224,645

15. REVENUES AND BUSINESS SEGMENTS

The structure of the Company's income is as follows:

Explanations 31.03.2022 31.03.2021
Total turnover, of which: 198,373,767 181,363,841
Revenue from sales of finished products 194,382,963 176,176,704
Revenue from services rendered 716,073 628,020
Revenue from sale of goods 2,681,372 3,895,111
Income from other activities (rents, sales of materials,
waste, semi-finished goods, packaging)
298,592 256,456
Income from subsidies related to turnover (projects and
partnership contracts AMPOSDRU projects)
294,767 407,550
Other operating income 4,409,282 4,152,489
Total operating income 202,783,049 185,516,330

Other operating income consists of :

Explanations 31.03.2022 31.03.2021
Income from the production of fixed assets 2,577,084 1,809,198
Income from investment grants (AMPOSDRU and
AMPOSCEE projects and partnership contracts)
1,292,166 1,322,957
Other operating income 540,032 1,020,334
Total Other operating income 4,409,282 4,152,489

Business segments

The Company's management regularly assesses its activity with a view to identifying business segments for which separate reporting is required.

The Company operates in Romania. The Company's revenues presented above are entirely attributable to the country of domicile.

Non-current assets other than financial instruments, deferred tax receivables, post-employment benefit receivables and rights arising from insurance contracts are located entirely in Romania. The Company has no such fixed assets located in other countries.

16. EXPENDITURE BY NATURE

Operating expenses by nature incurred in the first 3 months of 2022 and 2021 are shown in the table below:

Explanations 31.03.2022 31.03.2021
Material expenses 113,089,671 111,699,299
Stock differences 10,876,646 605,076
Energy and water costs 12,145,203 7,235,393
Employee benefits expenses 37,012,622 34,262,478
Value adjustments on fixed assets 11,904,361 10,383,534
Value adjustments on current assets 50,207 48,628
Expenditure on services provided by third parties 11,071,145 8,730,674
Total operating expenses 200,402,928 177,239,787
Other operating expenses 3,257,078 3,151,950
Expenses on other taxes, duties and similar charges 995,995 1,122,755

17. EMPLOYEE BENEFIT EXPENSES

Employee benefit expenses include salaries, allowances and social security contributions. Short-term benefits are recognised as an expense as services are rendered.

Explanations 31.03.2022 31.03.2021
Salaries and allowances 36,275,710 33,665,272
Insurance and social protection expenditure 736,912 597,206
TOTAL 37,012,622 34,262,478

18. FINANCIAL LOSSES (GAINS)

The structure of financial losses (gains) is shown below:

Explanations 31.03.2022 31.03.2021
Foreign exchange gains related to monetary items
denominated in foreign currency
19,749 -1,307,060
Interest losses -412,928 -251,342
Other financial gains -66,419 1,288,552
Total losses/gains -459,598 -269,850

19. EARNINGS PER SHARE

The calculation of earnings per share for Q1 -2022 and Q1 - 2021 can be summarised as follows:

Explanations 31.03.2022 31.03.2021
Number of shares at the beginning of the year 218,821,038 218,821,038
Shares issued during the year 0 0
Number of shares at end of reporting period 218,821,038 218,821,038
Net profit 1,388,476 7,474,755
Basic/diluted earnings per share (RON/share) 0.0063 0.0342

On 15.11.2021 the process of repurchase of own shares, started on 13.08.2020, in accordance with AGM Decisions 18 and 19 of 27.04.2020, was completed, with the following results:

-number of repurchased shares: 6,504,153

  • average purchase price: 0.5962 lei/share

  • total value of shares bought back: 3,878,223.52 lei

These shares do not have voting rights and dividend rights.

A number of 649,100 shares, with a nominal value of 64,910 lei, are held by the affiliated company Recaserv SRL, as a result of which these shares do not have voting and dividend rights.

The calculation of the earnings per share with voting and dividend rights is as follows:

Explanations 31.03.2022 31.03.2021
Total number of shares 218,821,038 218,821,038
Shares without voting rights and dividend -7,153,253 -7,056,797
Number of shares with voting and dividend rights
At year-end
211,667,785 211,764,241
Net profit 1,388,476 13,919,766
Basic / diluted earnings per voting and dividend
share (in RON per share):
0.0066 0.0657

20. AFFILIATED PARTIES

The affiliated entities of Compa SA are the following:

Affiliated parties % ownership Object of activity
COMPA IT SRL 100,00 Custom software development activities
TRANS CAS SRL 99,00 Road haulage
RECASERV SRL 70,00 Catering activities for events
ARINI HOSPITALITY SRL 100,00 Hotels and similar accommodation facilities

Transactions with companies in which Compa has shareholdings were as follows (amounts include VAT):

Explanations 31.03.2022 31.03.2021
THE COMPANY IN LOAN PURCHASES OF SALES OF LOAN PURCHASES SALES OF
WHICH THE GRANTED TO GOODS AND GOODS GRANTED OF GOODS GOODS
SHARES ARE AFFILIATES SERVICES AND TO AND AND
OWNED SERVICES AFFILIATES SERVICES SERVICES
TRANSCAS S.R.L. 3,892,342 164,002 0 4,236,620 139,282
COMPA IT S.R.L. 755,650 14,375 0 736,848 12,852
RECASERV S.R.L. 361,502 12,582 0 299,904 1,511
ARINI HOSPITALITY 414,835
S.R.L. 0 2,648 0 0 809,610

Mutual receivables and payables as at 31.03.2022 and 31.03.2021 are as follows:

Receivables due to Compa SA from:

Explanations 31.03.2022 31.03.2021
TRANSCAS S.R.L. 113,644 135,500
COMPA IT S.R.L. 18,813 16,694
RECASERV S.R.L. 23,649 1,511
ARINI HOSPITALITY S.R.L. 916,601 809,610

Debts payable by COMPA SA to:

Explanations 31.03.2022 31.03.2021
TRANSCAS S.R.L. 2,872,264 4,993,404
COMPA IT S.R.L. 1,069,200 1,018,043
RECASERV S.R.L. 341,324 399,567
ARINI HOSPITALITY S.R.L. 0 0

Company management

List of company directors :

NUMELE ŞI PRENUMELE CALIFICARE FUNCŢIA
DEAC Ioan Engineer President C.A.
MICLEA Ioan Economist Board Member
MAXIM Mircea Florin Engineer Board Member
Economist Member CA - Chairman Audit Committee
BALTEŞ Nicolae
Economist CA Member - Audit Committee Member
NEACŞU Vlad- Nicolae

List of members of the executive management and directors on function of the company :

FIRST AND LAST NAME FUNCTION
DEAC Ioan Director General / Chairman of the Board
DUMITRESCU Mihaela Economic Director
FIRIZA Ioan Management Director
BĂIAŞU Dan-Nicolae Commercial Director
ACU Florin-Ştefan Technical Director
MUNTENAŞ Bogdan-Vasile Logistics Director
ŢUICU Liviu-Laurenţiu Quality -
Environment Director
DUMITRESCU Cosmin Industrial Director
HERBAN Dorin-Adrian Management Systems and Improvement Director
ŢUŢUREA Mihai Production Director
FIRIZA Sorin Ioan Deputy Production Director
DRAGOMIR Marius C-tin Chief Maintenance Engineer

Transactions with members of the Company's management are limited to salaries and allowances.

On behalf of the Board of Directors:

Director General / Chairman of the Board Economic Director Ioan DEAC Mihaela DUMITRESCU

0

FINANCIAL REPORT CONSOLIDATED INTERIM

(UNAUDITED)

31.03.2022

Prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

C O N T E N T

1 INTRODUCTION

  • 1.1. LEGAL FRAMEWORK, PURPOSE AND NEED FOR FINANCIAL STATEMENTS
  • 1.2. CONSOLIDATION METHODS APPLIED
  • 2. BRIEF HISTORY
  • 3. INFORMATION ON GROUP ENTITIES
  • 4. EVENTS IN THE GROUP'S ACTIVITY IN Q1 2022
  • 5. INTRA-GROUP TRANSACTIONS
  • 6. FINANCIAL AND ACCOUNTING SITUATION OF THE GROUP
  • 7. STATEMENT OF COMPLIANCE OF THE CONSOLIDATED INTERIM FINANCIAL REPORT
  • 8. CONSOLIDATED INTERIM FINANCIAL REPORT AS AT 31.03.2022

1. INTRODUCTION

1.1. LEGAL FRAMEWORK, PURPOSE AND NECESSITY OF PREPARATION OF FINANCIAL STATEMENT

COMPA S.A. Sibiu, whose SHARES are admitted to trading on the regulated market of the Bucharest Stock Exchange, applies the International Financial Reporting Standards (IFRS) starting with 2012.

In accordance with the accounting regulations in accordance with the 7th Directive of the European Economic Communities, COMPA S.A. Sibiu (parent company) meets the conditions according to point 12. Based on point 3 of these regulations, the consolidated annual financial statements have been prepared.

The set of accounting registration rules of the economic-financial operations for the preparation, approval and statutory audit of the consolidated annual financial statements of the companies are provided in the "Accounting regulations compliant with IFRS" approved by OMFP 2844/2018.

All these normative acts constituted the necessary legal basis for the elaboration of the consolidated financial statements of the Group

The consolidated objective of the COMPA Group has as main objective the information of the investors and business partners of the parent company, as well as of the affiliated companies.

1.2. METHODS OF CONSOLIDATION APPLIED

According to the legal regulations, the preparation of the consolidated financial statements is carried out by the entity hereinafter referred to as the parent company, which holds participation titles in another entity, called the subsidiary or affiliated company.

In this context, COMPA S.A. Sibiu as a parent company has control, respectively the share of its participations in the share capital of the affiliated companies is higher than 50% in the following affiliated entities:

COMPA I.T. S.R.L. 100,00 %
TRANS C.A.S. S.R.L. 99,00 %
RECASERV S.R.L. 70,00 %
ARINI HOSPITALITY SRL 100,00 %

COMPA S.A. Sibiu, the parent company, exercises an effective power, having a dominant influence, respectively it has control over the Group companies. Given the accounting regulations as well as the existing recommendations in this field, the consolidation method used with these companies is the "Global Integration Method".

2. BRIEF HISTORY

1886 - The Jozsef Datky blacksmith's workshop is officially certified, where lamellar springs were produced for the carriages of the time but also for some parts and tools obtained by forging.

The workshop was developed so that the products made in this family business were found at international exhibitions in the Austro-Hungarian Empire (Vienna and Budapest).

1948 - It is the year in which private companies, such as the predecessor Uzina Elastic, profiled at that time in the manufacture of sheet springs, helical springs wrapped hot or cold, were nationalized as a result of the installation in Romania of the communist regime..

1969 - The Automobile Parts Enterprise (IPAS) is established, by merging two large companies, which operated in Sibiu that year, respectively:

  • Sibiu Automecanica Plant, which in turn had an impressive history, from an arsenal of Artillery, which ensures the repair and manufacture of weapons necessary for the defense of the Sibiu Fortress, to the construction of car equipment with advanced technology at the time of merger;

  • Elastic Sibiu Plant, with a craft tradition since the founding of the Datky Workshop, which it has permanently developed, making at the time of merging a varied and diversified range of lamellar springs for the manufacture of vehicles made in Romania and a wide range of springs helical, hot and cold wrapped, intended for the entire rolling stock industry (locomotives, wagons), of the machine building industry from all over Romania.

1991 - The Automobile Parts Enterprise (IPAS) is transformed into S.C.COMPA S.A.Sibiu, as a result of the political and economic framework created by the transition of Romania from a communist totalitarian state to a state with a market economy.

1999 - It is the year of the privatization of the parent company, S.C.COMPA S.A. by purchasing the majority stake of the State Property Fund (FPS). This historical stage ensures the premises for the development in conditions of competitiveness and profitability of the company, for the development of business partnerships with representative companies from the world industry, on the principles of equality and competence, of fair competition.

2000 - The foundations are laid for the establishment of the COMPA Group by transforming the IT Service, which operated within the parent company with the activity of software design and internal network administration, into a separate company, S.C.Compa IT S.R.L., with full capital COMPA. As a result of the establishment of this company in an economic unit with predominant activity in information technology (IT), the premises for the development of this sector of activity were created both for the realization of an integrated IT system of COMPA but also for software for other companies in outside the Compa Group.

2001 - The second affiliated company S.C.TRANS C.A.S. S.R.L. Sibiu, a limited liability company, with a predominant COMPA contribution, resulted from the transformation of the existing Transport Base within the parent company, into a separate company specialized in domestic and international road transport. By setting up this company specialized strictly in the transport activity, the conditions for its development were created, which provide transport services, not only for the parent company, but also for other companies in Romania and in Europe.

The company has developed a lot since its establishment, investing in the acquisition of mainly heavy trucks (TIR) used for transporting raw materials and materials from suppliers and transporting finished products, both for COMPA and for various companies in Romania but more resembles companies in Europe.

2004 - The third affiliated company is established, respectively RECASERV S.R.L., by transforming the activity of the COMPA canteen into a separate company in which the COMPA company holds the control position, being the majority associate.

2021 - The fourth affiliated company is established, respectively ARINI HOSPITALITY S.R.L., which will carry out hotel activity, by building the Ibis-Mercure hotel complex.

3. INFORMATION REGARDING THE ENTITIES WITHIN THE GROUP

3.1. COMPA S.A. parent - Company

Social headquarters No.8, Henri Coandă Street, Sibiu
Registration no. in theTrade Register J32/129/1991,
Fiscal Code (VAT Code) RO 788767
The main activity 2932 - Manufacture of other parts and accessories for motor vehicles
Share capital (RON) 21.882.103,8
Board of Directors Deac Ioan
- Chairman & CEO
Miclea Ioan -
- Vice Chairman & CFO
Maxim Mircea Florin - Administrator
Balteş Nicolae
- Audit committee President/ administrator
Neacşu Vlad Nicolae - Audit committee member/ administrator

Form of ownership: COMPA S.A. is a company with 100% private capital. It was privatized in September 1999, by buying the majority stake in the Compa Sibiu Employees Association , which became the company's main shareholder.

The financial investments of the parent company COMPA, which consist of participation titles and shares, in the other 4 affiliated companies, as follows:

COMPA holds titles /
equity shares :
Social headquarters The value of
titles held by
COMPA
%
ownership
COMPA I.T. S.R.L. Sibiu, 8 Henri Coandă, Sibiu county 200,000 100.00
TRANS .C.A.S. S.R.L. Sibiu, 12 Henri CoandăSibiu county 1,498,450 99.00
RECASERV S.R.L. Sibiu, 51 Henri CoandăSibiu county 70,000 70.00
ARINI HOSPITALITY S.R.L. Sibiu, 8 Henri Coandă, Sibiu county 19.703.000 100.00
TOTAL 20,715,500

The management of the parent company COMPA, as well as of the entire Compa Group is ensured by the Board of Directors elected by the Ordinary General Meeting of Shareholders, for a period of 4 years.

3.2. COMPA I.T. S.R.L Company

The purpose of the establishment was to design and implement an integrated IT system for the parent company, to the existing international standards and to ensure the requirements imposed by the organization of profit centers of the company COMPA, as well as to ensure a computer network of computers extended throughout the company COMPA.

By implementing the integrated system in the parent company, Compa-IT ensures the operation of this system at higher parameters, prepares reports and presents the new facilities of the system in order to capitalize at the highest possible level of opportunities that this very complex system can offer. competitive.

Social headquarters Sibiu, No.8, Henri Coandă Str, Sibiu County
Recording no. in the Trade Register J32/17/2001,
Fiscal Code (VAT) CUI 13656016
The main activity 6201 - Computer programming activities
Share capital (RON) 200,000
Sole shareholder COMPA S.A
Administrator Acu Florin-Ştefan

3.3. TRANS C.A.S. S.R.L. Company

The reason for setting up the company was to outsource the car transport activity initially existing within the COMPA company, in order to expand and develop this activity different from the activity profile of the COMPA company.

TRANS C.A.S. S.R.L. currently owns a number of over 60 vehicles, of which a significant share is held by Mercedestype trailer trucks, with a capacity of over 20 tons payload, intended for the transport of materials and finished products for both COMPA and other customers.

The overwhelming share of TRANS C.A.S. it is owned by international freight transport in almost all of Europe.

Social headquarters Sibiu, No.12, Henri Coandă Street, Sibiu County
Recording no. in the Trade Register J32/633/2002
Fiscal Code (VAT Code) CUI 14836511
The main activity 4941 Freight transport by road
Share capital, of which: 750.000 lei
Acţionari: COMPA S.A.Sibiu 742.500 lei
Maxim Mircea Florin & Mihăilă Daniela 7.500 lei
Administrator Maxim Mircea Florin

In June 2021, according to the Decision of the Extraordinary General Meeting of Shareholders of Compa SA from 12.11.2020, as well as the Decision of the Extraordinary General Meeting of TRANS C.A.S. S.R.L. Associates of 12.01.2021, the share capital of TRANS C.A.S. S.R.L. was decreased from- 1,500,000 lei, at 750,000 lei.

The holding of Compa SA in the share capital of this affiliated company decreased from 1,498,450 to 742,500 lei.

3.4. RECASERV S.R.L.Company

The purpose of setting up the company was to outsource from the parent company COMPA S.A. of some activities different from its main activity profile, activities such as: public catering made through the canteen and the micro-canteens that operate inside the COMPA company.

By establishing RECASERV S.R.L. the conditions for the development of this activity were ensured by supplementing with secondary services: catering and cleaning services.

Social headquarters Sibiu, 51 Henri Coandă StreetSibiu County
Recording no. in the Trade Register J32/704/2004
Fiscal Code (VAT Code) CUI 164408228
The main activity 5629 Other food service activities
Share capital, of which: 100.000 RON
Shareholders: COMPA S.A.Sibiu 70%
Boroş Daniela (individual person) 30%
Administrator BOROŞ Daniela

3.5. ARINI HOSPITALITY S.R.L. Company

The purpose of setting up the company was to outsource from the parent company COMPA S.A. of activities different from its main activity profile, activities such as: Hotels and other similar accommodation facilities.

Social headquarters Sibiu. Str.Henri Coandă Nr.8
Recording no. in the Trade Register J32/77/2021
Fiscal Code (VAT Code) CUI 43581594
The main activity 5510 Hotels and similar accommodation
Share capital (RON) 19.703.000 lei
Sole shareholder 100%
Administrator Băiaşu Dan-Nicolae

4. IMPORTANT EVENTS IN THE GROUP'S ACTIVITY IN THE FIRST THREE MONTHS OF 2022

23.02.2022 - At the meeting of the Board of Directors convened on 23.02.2022, the preliminary financial results for 2021, both the individual results for Compa and the preliminary financial results for 2021 for the Group, were analysed and approved.

24.02.2022 - An event with a major impact on the entire world economy, including Romania and of course on Compa's activity, is the military attack on Ukraine by the Russian army. The effects of this armed conflict on Compa are:

  • reduction in the volume of orders from most customers

  • major disruptions in the supply chain of raw materials and materials, consisting of changes in suppliers; force majeure situations at various suppliers with implications for the entire supply chain

  • cost increases due to price explosions for: electricity, methane gas, steels, chemicals, spare parts, etc.

  • major impact on the profitability of the company as a result of: non-recognition or (partial) acceptance of prices by most customers, unprecedented increases in utility prices with escalation of these price increases from almost all suppliers.

These major effects in Compa's costs, significantly reduced Compa's realized profit margin in Quarter 1 of 2022.

10.03.2022 - A meeting of the Board of Directors of Compa S.A. was convened to approve the proposal to convene the Ordinary General Meeting of Shareholders (AGM) for 28.04.2022 first call (15:00) and 29. 04.2022, second convocation (15:00) as well as the proposal to convene the Extraordinary General Meeting of Shareholders (EGM0 for 28.04.2022 first convocation 16:00) and 29.04.2022, second convocation (16:00).

The Board of Directors approved the agenda of the AGM convened on 28/29.04.2022, in which a number of 11 items were included (according to the Notice of Meeting) as well as the 12 items included in the Notice of Meeting related to the AGM of 28/29.04.2022.

The Board of Directors meeting on 10.03.2022 also approved the following:

  • the date of 12.04.2022 as the reference date for the AGM and the EGM of 28/29.04.2022 respectively

  • the appointment of Mr. Băiașu Dan Nicolae as Deputy General Manager, as of 01.04.2022.

16.03.2022 - At the Board of Directors meeting of 16.03.2022 it was approved to add to the agenda of the AGM of 28/29.04.2022 another item on the Management Remuneration Report prepared for 2021. With this item, the agenda of the AGM of 28/29.04.2022 approved at the Board meeting of 10.03.2022 is supplemented.

23.03.2022 - At the meeting held on 23.03.2022, the Board of Directors approved the Individual and Consolidated Annual Report for the financial year 2021 prepared in accordance with Annex 15 of ASF Regulation no. 5/2018. Also during the Board meeting of 23.03.2022, the Income and Expenditure Budget for 2022 and the Investment Programme for 2022 were approved.

On 23.03.2022, the meeting of the Associates Arini Hospitality, in which Compa is the sole associate, was held, the Board of Directors approved the establishment of a secondary office - working point at the address in Sibiu, Bd. Victoriei nr. 42-44, Jud. Sibiu. for the affiliated company ARINI HOSPITALITY S.R.L.

5. INTRA-GROUP TRANSACTIONS

The relations were conducted on commercial free market terms, the price being agreed by negotiation, within market levels.

The transactions carried out with companies in which Compa holds stakes in the period 01.01.2022-31.03.2022 compared to the same period last year were as follows (amounts include VAT):

Explanations 31.03.2022 31.03.2021
THE COMPANY IN WHICH LOANS TO PURCHASES SALES OF LOANS TO PURCHASES SALES OF
THE SHARES ARE OWNED AFFILIATES OF GOODS
AND
SERVICES
GOODS
AND
SERVICES
AFFILIATES OF GOODS
AND
SERVICES
GOODS
AND
SERVICES
TRANSCAS S.R.L. 3,892,342 164,002 0 4,236,620 139,282
COMPA IT S.R.L. 755,650 14,375 0 736,848 12,852
RECASERV S.R.L. 361,502 12,582 0 299,904 1,511
ARINI HOSPITALITY 414,835
S.R.L. 0 2,648 0 0 809,610

6. FINANCIAL AND ACCOUNTING SITUATION OF THE GROUP

6.1. The main balance sheet items

The main balance sheet items and developments in Q1 2022 compared to Q1 2021 are shown below:

Indicator 31.03.2021 31.03.2022
FIXED ASSETS 497,016,723 491,864,239
CURRENT ASSETS 268,731,945 332,903,242
DEBTS LESS THAN ONE YEAR 154,862,890 160,693,907
DEBTS OVER A YEAR 113,119,483 160,131,301
CAPITAL AND RESERVES 497,766,295 503,942,272

9

6.2. The main economic-financial indicators of the Compa Group

Indicators 31.03.2021 31.03.2022
Current liquidity 1.74 2.07
Degree of indebtedness 17.03% 24.11%
Rotation rate of flows - customers 69.92 69.44
Rotation rate of fixed assets 0.37 0.41

6.3. Comparison of the main group indicators - parent company

COMPA Grup COMPA Grup
INDICATORI 31.03.2021 31.03.2021 31.03.2022 31.03.2022
Fixed assets 498,501,516 497,016,723 477,868,339 491,864,239
Current assets 265,092,507 268,731,945 321,382,412 332,463,896
Equity 492,416,887 497,766,295 498,802,974 503,942,272
Long-term debt 112,954,785 113,119,483 138,346,074 160,131,301
Current debts 158,222,351 154,862,890 162,101,702 160,254,561
Fiscal value 181,363,841 182,226,772 198,373,767 199,326,832
Gross profit 8,006,693 8,050,309 1,920,526 1,734,588
Net profit for the period 7,474,755 7,492,578 1,388,476 1,188,973

7. STATEMENT OF CONFORMITY OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENT

STATEMENT

in accordance with the provisions of art. 30 of the Accounting Law no. 82/1991

__________________________________________________________________________________________

The consolidated quarterly financial statements were prepared on 31.03.2022 for

Entity: COMPA S.A. County: 32 Sibiu Address: Sibiu locality, Henri Coandă street, no. 8, CP 550234 Trade register number: J 32/129/1991 Form of ownership: 34 Joint stock companies Predominant activity (code and name CAEN class): 2932 - Manufacture of other parts and accessories for motor vehicles

Registration Number: RO788767

The undersigned Mihaela DUMITRESCU,

according to art.10 paragraph (1) of the Accounting Law no.82 / 1991, having the quality of CFO, I assume the responsibility for the preparation of the consolidated for the first quarter Q1 financial reports on 31.03.2022 and I confirm the following:

__________________________________________________________________________________________

a) The accounting policies used in preparing the half-yearly financial reports are in accordance with the applicable accounting regulations.

b) The first quarter Q1 financial reports provide a true and fair view of the financial position, financial performance and other information relating to the activity carried out.

c) The legal person carries out its activity in conditions of continuity.

CFO,

Mihaela DUMITRESCU

8. INTERIM FINANCIAL CONSOLIDATED REPORT AT 31.03.2022

Consolidated statement of financial position - 31.03.2022.

(all amounts are expressed in RON, unless otherwise specified)

Nota 31.03.2022 31.12.2021
Assets:
Fixed assets:
Tangible fixed assets 4.1. 431,955,640 431,906,073
Intangible assets 4.2. 38,586,451 39,749,495
Real estate investments 5 9,080,198 9,258,898
Other receivables (Subsidies and
settlements from joint operations) 6 12,111,269 12,465,269
Other fixed assets 7 118,946 122,718
Deferred tax receivables 10 11,735 134,578
Fixed assets- total 491,864,239 493,637,032
Current assets:
Stocks 8 131,485,710 142,448,316
Trade and other receivables 6 189,054,631 141,646,233
Other receivables (Subsidies and
settlements from joint operations) 6 7,434,781 7,907,396
Cash and cash equivalents 9 4,488,773 14,120,744
Current assets - total 332,463,896 306,122,688
Total assets 824,328,135 799,759,720
Equity:
Capital issued 11 21,882,104 21,882,104
Share capital adjustments 11 -715,325 -715,325
reserves 11 376,133,621 376,063,500
Reserve adjustment 11 23,150,986 23,150,986
Reported result 11 82,093,326 67,058,412
Current result 11 1,188,708 15,034,914
Minority interests 11 208,853 208,588
Equity - total 503,942,272 502,683,179
Long-term debts:
Financial debts 12 119,704,988 102,360,850
Prepaid income(prepaid income, subsidies)
Provisions 13 40,182,388 41,088,479
14 243,925 224,645
Long-term debt - total 160,131,301 143,673,974
Current liabilities:
Financial debts 12 14,622,749 14,390,660
Trade and similar debts; 13 117,261,036 110,179,139
Other debts 13 16,876,626 13,638,221
Debts from contracts with clients 13 6,056,090 9,051,042
Current tax liabilities 13 17,135 28,155
Advance income (advance income,
subsidies) 13 5,420,925 6,115,351
Current liabilities - total 160,254,561 153,402,568
Totaldebts 320,385,862 297,076,541
Total equity and debt 824,328,135 799,759,720

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME AS AT 31.03.2022 (all amounts in RON unless otherwise stated)

Nota 31.03.2022 31.03.2021
Income 15 199,326,832 182,226,772
Other incomes 15 4,453,620 3,507,418
Total income 203,780,452 185,734,190
Variation of stocks of finished products and
production in progress 16 -10,866,048 -605,258
Raw materials and consumables used 16 -126,601,437 -120,004,659
Expenses with employee benefits 17 -38,522,906 -35,564,091
Depreciation and amortization expenses 4,5,16 -12,087,419 -10,565,589
Services provided by third parties 16 -9,047,933 -6,978,300
Other expenses 16 -4,391,794 -3,706,281
Total expenses -201,517,537 -177,424,178
Operating result 2,262,915 8,310,012
Financial income 18 -19,929 475
Financial expenses 18 -460,999 -255,752
Other financial gains / losses 18 -47,398 -4,426
Net financing costs -528,327 -259,703
Profit before tax 1,734,588 8,050,309
(Expenses) / Deferred income tax income 10 -287,153 590,012
Current income tax expense 10 -258,462 -1,147,743
Total cheltuieli cu impozitul pe profit -545,615 -557,731
Net profit for the period, of which: 1,188,973 7,492,578
Attributable to non-controlling interests 265 -649
Attributable to the mother society 1,188,708 7,493,227
Other elements of the overall result:
of which, other items of comprehensive income
that will not be subsequently reclassified to profit
or loss: 11 70,121 70,599
Other comprehensive income, net of tax 70,121 70,599
Total overall result for the year, of which: 1,259,094 7,563,177
Attributable to non-controlling interests 265 -649
Attributable to the mother society 1,258,829 7,563,826
Consolidated result per basic / diluted share 19 0.01 0.03

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 31.03.2022

(all amounts are expressed in lei. unless otherwise specified)

Equity element Share
capital
Adjustments
of share
capital
Losses
related to
treasury
shares
Legal
reserves
Adjustmen
ts to legal
reserves
Revaluation
reserves
Other
reserves
Adjustmen
ts to other
reserves
Retained
earnings
Totally
attributable
to the
company's
shareholder
s
Things
that do
not
control
Total
Sold la 01.01.2021 21,882,104 -250,338 -920,264 4,960,129 22,679,066 83,891,130 279,505,201 472,028 80,590,192 492,809,248 159,849 492,969,097
Profit of the year 15,034,914 15,034,914 3,314 15,038,228
Other comprehensive
income, of which:
0 0 -2,365,268 0 0 0 304,014 0 0 -2,061,254 -2,061,254
Losses on repurchase of
own shares
-2,365,268 -2,365,268 -2,365,268
Income tax relating to
other comprehensive
income
304,014 0 304,014 304,014
Transactions with
shareholders, recognised
directly in equity, of
which:
0 -464,987 0 -2,613 0 0 10,691,063 0 -
13,531,780
-3,308,317 45,425 -3,262,892
Repurchase of own shares -464,987 0 -464,987 -464,987
Profit distribution -2,613 10,691,063 -
13,531,780
-2,843,330 45,425 -2,797,905
Sold
at
31.12.2021
21,882,104 -715,325 -3,285,532 4,957,516 22,679,066 83,891,130 290,500,278 472,028 82,093,326 502,474,591 208,588 502,683,179
Equity element Share
capital
Adjustments
of share
capital
Losses
related to
treasury
shares
Legal
reserves
Adjustmen
ts to legal
reserves
Revaluation
reserves
Other
reserves
Adjustmen
ts to other
reserves
Retained
earnings
Totally
attributable
to the
company's
shareholder
s
Things
that do
not
control
Total
Sold la 31.12.2021 21,882,104 -715,325 -3,285,532 4,957,516 22,679,066 83,891,130 290,500,278 472,028 82,093,326 502,474,591 208,588 502,683,179
Profit of the year 1,188,708 1,188,708 265 1,188,973
Other comprehensive
income, of which:
0 0 0 0 0 0 70,121 0 0 70,121 70,121
Losses related to
repurchase of own shares
0 0
Income tax relating to
other comprehensive
income
70,121 70,121 70,121
Sold at
31.03.2022
21,882,104 -715,325 -3,285,532 4,957,516 22,679,066 83,891,130 290,570,399 472,028 83,282,034 503,733,420 208,853 503,942,273

Consolidated statement of cash flows at 31.03.2022

(all amounts are expressed in RON, unless otherwise specified)

Explanations 31.03.2022 31.03.2021
Cash flows from operating activities
Profit before tax 1,734,588 8,050,309
Adjustments for non-monetary items:
Depreciation and amortization expense 12,087,419 10,565,589
Adjustment for other non-monetary items -4,412,524 -5,610,531
Operating profit before other changes in working capital 9,409,483 13,005,367
(Increase) / Decrease in inventories 10,962,605 -4,119,008
(Increase) / Decrease in receivables -46,578,012 -22,610,863
Increases / (Decreases in liabilities) 7,314,330 22,361,577
Net cash generated from operations -18,891,593 8,637,073
Cash flow from investing activities
Purchases of tangible fixed assets
Acquisitions of intangible assets -7,664,774 -7,443,636
-202,295 -611,599
Net cash generated from investing activities -7,867,069 -8,055,235
Cash flows from financial activities
(Increase) / Decrease in financial liabilities 17,576,228 5,956,869
Interest payments -449,537 -255,752
Net cash generated from financial activities 17,126,691 5,701,117
Net cash generated from total activity -9,631,971 6,282,955
Cash and cash equivalents at beginning of period
14,120,744 2,250,970
Cash and cash equivalents at end of period 4,488,773 8,533,925

EXPLANATORY NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT AT 30.09.2021

((all amounts are expressed in RON, unless otherwise specified)

1. GENERAL INFORMATION

COMPA parent company

COMPA is a joint stock company, based in Sibiu, str. Henri Coandă no.8, CP 550234

Field of activity of the company: design, production and marketing of components for the manufacture of cars, transport vehicles, buses, trailers, tractors, wagons, locomotives and various industrial equipment, services and technical assistance.

The main object of activity, according to the CAEN code is 2932 "Manufacture of other parts and accessories for motor vehicles and motor vehicles"

The form of ownership of the company

COMPA S.A. is 100% privatized since September 1999. The company is listed, the shares are traded on the Bucharest Stock Exchange in the Standard category, CMP symbol.

The evolution of the company

By Government Decision no. 1296 / 13.12.1990, the company became S.C.COMPA S.A., coming from the Sibiu Auto Parts Company (I.P.A.Sibiu). I.P.A. Sibiu was founded in 1969 by unifying two units: Uzina Elastic and Uzina Automecanica Sibiu.

Since 1991, COMPA has been organized in factories / workshops, set up by product families as cost centers, which over time have become profit centers, in order to decentralize and facilitate the establishment of joint ventures.

Financial investments COMPA S.A. as a parent company, representing participation titles held in shares or shares in commercial entities are presented in the table below:

The company in which
COMPA holds the
securities
Social headquarters The value of securities
held by COMPA
% in share
capital
COMPA I.T. S.R.L. Str.Henri Coandă nr.8, Sibiu, jud.Sibiu 200.000 100,00
TRANS C.A.S. S.R.L. Str.Henri Coandă nr.12, Sibiu, jud.Sibiu 1.498.450 99,00
RECASERV S.R.L. Str.Henri Coandă nr.51, Sibiu, jud.Sibiu 70.000 70,00
ARINI HOSPITALITY S.R.L. Str.Henri Coandă nr.8, Sibiu, jud.Sibiu 19.703.000
TOTAL 20,715,500

The management of the COMPA Group is ensured by a Board of Directors consisting of:

  • Deac Ioan Chairman & CEO,
  • Miclea Ioan Vice-chairman
  • Maxim Mircea-Florin member of the Board
  • Balteş Nicolae member of the Board/ president of audit commitee
  • Neacşu Vlad Nicolae member of the Board/ member of audit commitee

2. BASICS OF PREPARATION

Declaration of conformity

The consolidated interim financial report has been prepared in accordance with the International Financial Reporting Standards adopted by the European Union ("EU") and with the Order of the Minister of Public Finance no. 2844/2016.

The Group has adopted IFRS reporting since the 2012 financial statements.

3. SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies applied by the Group are those presented in the Financial Statements concluded on 31.03.2022 and have not changed during the interim report.

4.1. TANGIBLE ASSETS

The evolution of tangible assets from January 1, 2022 to mach 31, 2022 is as follows:

Explanations Book value at
31.03.2022
Book value at
01.01.2022
Lands 52,983,700 52,983,700
Constructions 105,731,718 105,992,383
Equipment and vehicles 239,757,507 230,568,673
Other tangible assets 767,253 734,634
Corporal immobilizations taking course 32,715,463 41,626,683
Total 431,955,640 431,906,073

Tangible assets representing 'Tangible assets in progress' are valued at historical cost. The Group has chosen the fair value revaluation model for the valuation of property, plant and equipment in the nature of land and buildings.

In the fair value hierarchy, the revaluation of the company's land and buildings at fair value is classified as Level 2 data. The valuation technique used in Level 2 fair value measurement is the price comparison method. Comparable prices of nearby buildings and constructions are adjusted for specific characteristics such as property size, etc. The most important input date for this valuation method is the price per square metre. There were no transfers between the level at which fair value valuations are classified during 2022. Depreciation of property, plant and equipment is determined using the straight-line method.

Property, plant and equipment was reduced in 2022 through depreciation.

4.1.REAL ESTATE INVESTMENTS

The evolution of real estate investments from 1 January 2022 to 31 March 2022 is as follows:

Explanations Book value at
31.03.2021
Book value at la
01.01.2021
Real estate investments 38,360,312 39,609,154
Real estate investments under construction 226,139 140,341
Total 38,586,451 39,749,495

Investment property is valued at fair value. A gain or loss arising from a change in the fair value of investment property is recognised in profit or loss in the period in which it arises. Non-current assets 'Investment property in progress' are measured at historical cost.

In 2022, investment property was written down by transferring a building to the property, plant and equipment

class , due to a change in the purpose of its use.

5. INTANGIBLE FIXED ASSETS

Intangible assets held by the Group represent software, software licences and intangible assets in progress. Their evolution was as follows:

Book value at Book value at
Explanations 31.03.2021 01.01.2021
Formation expenses 141,593 150,827
Research and development expenditure 4,293,983 4,432,128
Computer programs and software 4,644,621 4,675,943
Total 9,080,198 9,258,898

Amortisation of intangible assets is determined using the straight-line method.

6. TRADE RECEIVABLES AND OTHER RECEIVABLES

The situation of other receivables held by the Group is as follows:

Book value at Book value at
Explanations 31.03.2022 01.01.2022
Trade receivables 175,876,719 131,699,738
Advances paid to suppliers 6,518,148 3,850,006
Receivables related to staff 3,300 3,611
Receivables in connection with the consolidated state
budget and the local budget 5,242,430 4,410,823
Different debitors 290,992 220,484
Prepayments 1,123,042 1,461,571
Subsidies receivable (European funds projects,
subsidies for staff costs) 19,546,050 20,372,665
Total 208,600,681 162,018,898

Receivables in foreign currency are valued in lei at the official exchange rate of the NBR on 31.03.2022.

7. OTHER NON-CURRENT RECEIVABLES

Non-current receivables held by the Group are as follows:

Explanations 31.03.2021 01.01.2021
Customs guarantee for customs clearance at
headquarters 103,000 103,000
Other guarantees 15,946 19,718
Total alte active 118,946 122,718

8. STOCKS

The structure of the stocks held by the Group is presented in the table below:

Explanations 31.03.2022 01.01.2022
Raw materials 52,374,375 52,319,363
Materials and packaging 25,215,620 25,324,905
Semi-finished products and production in progress 41,930,276 42,857,109
Finished products and goods 11,965,439 21,946,939
Total stocks 131,485,710 142,448,316

5. CASH AND CASH EQUIVALENTS

The structure of the stocks held by the Group is presented in the table below:

Explanations 31.03.2022 01.01.2022
Bank accounts in RON 3,180,788 12,774,492
Currency bank accounts 1,154,855 1,152,793
Cash equivalents 499 79,909
Petty cash 133,770 91,177
Currency 18,861 22,373
Total cash and cash equivalents 4,488,773 14,120,744

The group holds accounts in lei and foreign currency at the following banking institutions: BRD GROUP SOCIETE GENERALE, ING BANK, TREZORERIE

6. CORPORATE INCOME TAX

The tax on the Group's current profit is determined on the basis of the statutory profit, adjusted for non-deductible expenses and non-taxable income, at a rate of 16% for 3 months 2022 and 3 months 2022.

At 31 March 2022 and 31 March 2021 the profit tax is made up of:

Explanations 31.03.2022 31.03.2021
Current income tax expense -251,821 -1,144,022
Microenterprise income tax expense -6,641 -3,721
Deferred income tax expense/expense -287,153 590,012
Total income tax/income -545,615 -557,731

7. EQUITY

The shareholding structure on 31.03.2022 is as follows:

Explanations Nr. Shares % of total share
capital
Deac Ioan 41,585,887 19.0045
Miclea Ioan 41,042,480 18.7562
Individual Shareholders 72,674,202 33.2117
Company Shareholders 63,518,469 29.0276
Total number of shares 218,821,038 100.0000

The Group's shares have a nominal value of 0.1 lei / share, the value of the share capital being 21,882,104 lei. Since June 1997 the Company's shares have been traded on the Bucharest Stock Exchange and the Group is currently listed in the Standard category.

The Group's shareholders' equity includes the following:

Explanations 31.03.2022 01.01.2022
Subscribed and paid-up capital 21,882,104 21,882,104
Own shares -715,325 -715,325
Losses on redemption of own shares -3,285,532 -3,285,532
Revaluation reserves 83,891,130 83,891,130
Legal reserves 4,957,516 4,957,516
Adjustment of legal reserves 22,679,066 22,679,066
Other reserves 290,570,507 290,500,386
Adjustment other reserves 471,920 471,920
Profit current year 1,188,708 15,034,914
Retained earnings 82,093,326 67,058,412
Minority interests 208,853 208,588
Total shareholders' equity 503,942,272 502,683,179

As of 13.08.2020, the Group has started the share buyback program in accordance with the AGM resolutions 18 and 19 dated 27.04.2020.

Size of the programme: repurchase from the market of a maximum of 15,000,000 own shares The proposed share buyback price is:

  • minimum price per share: 0.1 lei

  • maximum price per share: 1 lei

On 15.11.2021 this process was completed with the following results:

-number of repurchased shares: 6,504,153

  • average purchase price: 0.5962 lei/share

  • total value of repurchased shares: 3,878,223.52 lei

The shares were repurchased in order to distribute them free of charge to the members of the management and emplyees of the company, with the aim of building their loyalty and rewarding them for their work within the Group.

By the Board of Directors' resolutions no. 83/04.10.2021 and 85/05.10.2021, the Plan for the Allocation to employees and members of the management of option rights for the acquisition, free of charge, of a number of 6,500,000 repurchased shares, Stock Option Plan type, was approved.

9. FINANCIAL DEBTS

Long-term and short-term financial liabilities are as follows:

Credit institution Loan type 31.03.2022 01.01.2022
BRD GROUP SOCIETE GENERALE-ROMANIA Credit line for production 36,579,335 30,547,230
BRD GROUP SOCIETE GENERALE-ROMANIA Investment credit 29,832,987 31,707,160
ING BANK-SIBIU Production credit line 31,689,948 23,615,158
ING BANK-SIBIU Investment credit 28,992,856 30,707,627
BANCA TRANSILVANIA SIBIU Investment credit 5,477,033 0
BANCA TRANSILVANIA SIBIU State aid bridging loan 457,062 0
BANCA TRANSILVANIA SIBIU VAT credit 1,150,490 0
IMPULS-Leasing Romania I.F.N. SA Financial leasing contracts 148,027 174,334
Total financial debts 134,327,738 116,751,510

Financial liabilities in foreign currency are valued in lei at the official exchange rate of the NBR on 31.03.2022.

10. TRADE AND OTHER PAYABLES

The situation of trade and other debts is as follows:

Explanations 31.03.2022 01.01.2022
Suppliers 117,056,557 109,995,480
Advances received from customers 204,479 183,660
Debts from contracts with customers 6,056,090 9,051,042
Debts related to personnel 9,284,474 6,047,522
Debts to the general consolidated state and local budget 6,890,925 6,754,122
Current income tax liabilities 17,135 28,155
Dividends payable 183,815
Sundry creditors 5,173,412 632,595
Prepaid income 1,481,278 1,776,045
Investment subsidies from AMPOSDRU and AMPOSCEE
contracts 44,074,771 45,371,769
Inventory gains on fixed assets 47,264 56,016
Total trade and other payables 190,470,200 179,896,406

Foreign currency debts are valued in lei at the official exchange rate of the NBR on 31.03.2022

11. PROVIZIONS

The situation of provisions is shown in the attached table:

Explanations 31.03.2022 01.01.2022
Provisions for guarantees to customers 26,945 26,945
Provisions for employee benefits 108,700 108,700
Other provisions for risks and charges 108,280 89,000
Total provisions 243,925 224,645

12. REVENUES AND BUSINESS SEGMENTS

The structure of the Group's revenues is as follows:

Explanations 31.03.2022 31.03.2021
Total turnover, of which: 199,326,832 182,226,772
Revenue from sales of finished products 194,331,855 176,148,232
Revenue from services rendered 1,753,927 1,608,113
Revenue from sale of goods 2,727,971 3,888,037
Income from other activities (rents, sales of materials,
waste, semi-finished goods, packaging)
218,312 174,840
Income from subsidies related to turnover (projects and
partnership contracts AMPOSDRU projects)
294,767 407,550
Other operating income 4,453,620 3,507,418
Total operating income 203,780,452 185,734,190
------------------------ ------------- -------------

Other operating income consists of:

Explanations 31.03.2022 31.03.2021
Income from the production of fixed assets 2,577,084 1,809,198
Income from investment grants (AMPOSDRU and
AMPOSCEE projects and partnership contracts)
1,292,166 1,322,957
Other operating income 584,370 375,263
Total Other operating incom 4,453,620 3,507,418

Business segments

The Group's management regularly assesses the business in order to identify business segments for which separate reporting is required.

The company operates in Romania. The Group's revenues shown above are entirely attributable to the country of domicile.

Non-current assets, other than financial instruments, deferred tax assets, post-employment benefit claims and rights arising from insurance contracts are located entirely in Romania. The Group has no such fixed assets located in other countries

13. EXPENDITURE BY NATURE

Operating expenses incurred in the first 3 months of 2022 and 2021 by nature are shown in the table below:

Explanations 31.03.2022 31.03.2021
Different stock 10,866,048 605,258
Material expenses 114,456,233 112,769,266
Energy and water expenditure 12,145,204 7,235,394
Employee benefits expenses 38,522,906 35,564,091
Value adjustments on fixed assets 12,037,212 10,516,961
Value adjustments on current assets 50,207 48,628
Expenditure on services provided by third parties 9,047,933 6,978,301
Expenses on other taxes, duties and similar
charges 1,088,357 1,155,218
Other operating expenses 3,303,437 2,551,061
Total operating expenses 201,517,537 177,424,178

14. EMPLOYEE BENEFITS EXPENSE

Employee benefits expenses include salaries, allowances and social security contributions. Short-term benefits are recognised as an expense as services are rendered.

Explanations 31.03.2022 31.03.2021
TOTAL 38,522,906 35,564,091
Expenditure on insurance and social protection 768,723 624,444
Salaries and allowances 37,754,183 34,939,647

15. FINANCIAL LOSSES (GAINS)

The structure of financial losses (gains) is shown below:

Explanations 31.03.2022 31.03.2021
Foreign exchange gains related to monetary items
denominated in foreign currency 13,402 -1,286,667
Interest losses -441,820 -255,277
Other financial gains -99,909 1,282,241
Total gains/losses -528,327 -259,703

16. EARNINGS PER SHARE

The calculation of earnings per share for Q1 -2022 and Q1 - 2021 can be summarised as follows:

Explanations 31.03.2022 31.03.2021
Number of shares at the beginning of the year 218,821,038 218,821,038
Shares issued during the year 0 0
Number of shares at end of reporting period 218,821,038 218,821,038
Net profit 1,188,973 7,492,578
Basic/diluted earnings per share (RON/share) 0.0054 0.0342

On 15.11.2021 the process of repurchase of own shares, started on 13.08.2020, in accordance with AGM Decisions 18 and 19 of 27.04.2020, was completed, with the following results:

  • number of repurchased shares: 6,504,153

  • average purchase price: 0.5962 lei/share

  • total value of shares bought back: 3,878,223.52 lei

These shares do not have voting rights and dividend rights.

A number of 649,100 shares, with a nominal value of 64,910 lei, are held by the affiliated company Recaserv SRL, as a result of which these shares do not have voting and dividend rights.

The calculation of the earnings per share with voting and dividend rights is as follows:

Explanations 31.03.2022 31.03.2021
Total number of shares 218,821,038 218,821,038
Shares without voting rights and dividend -7,153,253 -7,056,797
Number of shares with voting and dividend rights At year
end
211,667,785 211,764,241
Net profit 1,188,973 7,492,578
Basic / diluted earnings per voting and dividend share (in
RON per share):
0.0056 0.0354

17. FINANCIAL INVESTMENTS

The affiliated entities of COMPA are:

Company in which the
shares are owned
% of share
capita
Value
owned
Object of activity
COMPA IT S.R.L. 100,00 200.000 Custom software development activities
TRANS CAS S.R.L. 99,00 742.500 Freight transport by road
RECASERV S.R.L. 70,00 70.000 Catering activities for events
ARINI HOSPITALITY SRL 100,00 19.703.000 Hotels and similar accommodation facilities

The transactions carried out in the period 01.01.2022-31.03.2022 with companies in which Compa holds stakes were as follows (amounts include VAT):

Explicatii 31.03.2022 31.03.2021
THE COMPANY IN WHICH LOANS TO PURCHASES OF SALES OF LOANS TO PURCHASES SALES OF
THE SHARES ARE OWNED AFFILIATES GOODS AND GOODS AFFILIATES OF GOODS GOODS
SERVICES AND
SERVICES
AND
SERVICES
AND
SERVICES
TRANSCAS S.R.L. 3,892,342 164,002 0 4,236,620 139,282
COMPA IT S.R.L. 755,650 14,375 0 736,848 12,852
RECASERV S.R.L. 361,502 12,582 0 299,904 1,511
ARINI HOSPITALITY 414,835
S.R.L. 0 2,648 0 0 809,610

Mutual receivables and payables as at 31.03.2022 and 31.03.2021 are as follows:

Receivables due to Compa SA from:

Explanations 31.03.2022 31.03.2021
TRANSCAS S.R.L. 113,644 135,500
COMPA IT S.R.L. 18,813 16,694
RECASERV S.R.L. 23,649 1,511
ARINI HOSPITALITY S.R.L. 916,601 809,610

Debts payable by COMPA SA to:

Explanations 31.03.2022 31.03.2021
TRANSCAS S.R.L. 2,872,264 4,993,404
COMPA IT S.R.L. 1,069,200 1,018,043
RECASERV S.R.L. 341,324 399,567
ARINI HOSPITALITY S.R.L. 0 0

Company management

List of company directors:

NUMELE ŞI PRENUMELE CALIFICARE FUNCŢIA
DEAC Ioan Engineer President C.A.
MICLEA Ioan Economist Board Member
MAXIM Mircea Florin Engineer Board Member
BALTEŞ Nicolae Economist Member CA - Chairman Audit Committee
NEACŞU Vlad- Nicolae Economist CA Member - Audit Committee Member

List of members of the executive management and directors on functions of the company:

FIRST AND LAST NAME FUNCTION
DEAC Ioan Director General / Chairman of the Board
DUMITRESCU Mihaela Economic Director
FIRIZA Ioan Management Director
BĂIAŞU Dan-Nicolae Commercial Director
ACU Florin-Ştefan Technical Director
MUNTENAŞ Bogdan-Vasile Logistics Director
ŢUICU Liviu-Laurenţiu Quality - Environment Director
DUMITRESCU Cosmin Industrial Director
HERBAN Dorin-Adrian Management Systems and Improvement Director
ŢUŢUREA Mihai Production Director
FIRIZA Sorin Ioan Deputy Production Director
DRAGOMIR Marius C-tin Chief Maintenance Engineer

Transactions with members of the Company's management are limited to salaries and allowances.

21. EVENTS AFTER THE REPORT DATE

On 28.04.2022 the General Meeting of Shareholders was held, during which the financial statements as at 31.12.2021 were approved.

On behalf of the Board of Directors,

Chairman & CEO, Economic Director, Ioan DEAC Mihaela DUMITRESCU

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